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Gold prices edge up as U.S. pending home sales see a record 44.3% jump in May

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(Kitco News) Gold prices saw a small uptick as U.S. pending home sales surprised on the upside, spiking 44.3% in May.

U.S. housing data showed that more consumers than expected committed to buying a home in May, according to the National Association of Realtors (NAR).

The U.S. pending home sales were up 44.3% in May, marking the largest one-month jump on record, the association said on Monday. Consensus forecasts were calling for an increase of 18.9%.

The pending home sales index came in at 99.6 in May, up from April’s reading of 69.0.

“This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” said NAR chief economist Lawrence Yun. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”

Yun also pointed out that more new home construction will be needed going forward. 

“More listings are continuously appearing as the economy reopens, helping with inventory choices,” Yun said. “Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.”

Economists pay close attention to the pending home sales numbers because the index is seen as a forward-looking barometer for the housing market. A lag of a month or two usually exists between a contract and a completed sale.

Gold prices edged up slightly following the publication of the report. August Comex gold futures were last trading at $1,782.20, up 0.11% on the day.

Live 24 hours gold chart [Kitco Inc.]

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