Gold Prices Holding Above $1,500 Following In Line U.S. Existing Home Sales Data
(Kitco News) - Gold prices continued to trade under pressure, but holding above critical support following news that U.S. consumers bought pre-existing homes at a pace in line with expectations last month, according to the latest report from the National Association of Realtors (NAR).
Existing home sales decreased 2.5% last month to a seasonally adjusted and annualized rate of 5.42 million units. Economists were expecting to see a sales pace of 5.41 million homes.
Gold prices were largely unchanged after the data was released, with December Comex gold futures last seen trading at $1,512.60 down 0.21% on the day. The housing data is having little impact on gold as prices hold above crticial near-term support.
Adam Button, managing director at Forexlive.com said that it's not surprising to see the small uptick in existing home sales as mortage rates have dropped as markets priced in looser Federal Reserve moentary policy action for the rest of the year.
Lawrence Yun, NAR’s chief economist said that lower mortgage rates is the biggest factor driving sales.
"Falling mortgage rates are improving housing affordability and nudging buyers into the market,” he said.
However, he added that the housing market still has to deal with falling supply. The NAR said that the supply of homes for sale dropped lat month to 1.89 million, representing a 4.2-month supply.
“Clearly, the inventory of moderately-priced homes is inadequate and more home building is needed,” said Yun.