Gold price hits new daily lows as U.S. pending home sales beat expectations in July
(Kitco News) Gold fell to new daily lows after the U.S. pending home sales beat expectations in July, showing that more consumers committed to buying a home.
The pending home sales were up 5.9% in June, the National Association of Realtors (NAR) said on Thursday. Consensus forecasts were calling for an increase of 3%.
The pending home sales index came in at 122.1 in July, up from June’s reading of 115.30.
Also, pending home sales were up 15.5% from a year ago, despite the COVID-19 pandemic uncertainty.
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” said NAR’s chief economist Lawrence Yun. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Pent-up demand is driving the housing market after prospective buyers missed most of the spring buying season due to lockdowns, noted Yun.
“That expected rebound would bring the full-year level of existing-home sales to 5.4 million, a 1.1% gain compared to 2019,” the report said.
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 hit fresh daily lows following the publication of the report. December Comex gold futures were last trading at $1,926.30, down 1.34% on the day.