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Gold price climbs as U.S. pending home sales miss expectations in September

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(Kitco News) Gold is attempting to make up some of the lost ground after the U.S. pending home sales miss expectations in September, showing that fewer consumers committed to buying a home.

The U.S. pending home sales declined 2.2% in September, the National Association of Realtors (NAR) said on Thursday. Consensus forecasts were calling for an increase of 3.4%.

The pending home sales index came in at 130.0 in September. August’s reading was upwardly revised to 132.9.

On an annual basis, pending home sales are still up 20.5% as low mortgage rates continue to drive demand.

"The demand for home buying remains super strong, even with a slight monthly pullback in September, and we're still likely to end the year with more homes sold overall in 2020 than in 2019," said NAR’s chief economist Lawrence Yun. "With persistent low mortgage rates and some degree of continuing jobs recovery, more contract signings are expected in the near future."

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 were up from daily as the report came out. December Comex gold futures were last trading at $1,871.10 an ounce, down 0.43% on the day. Earlier in the session, gold fell to a daily low of $1,859.20.

Traders were also busy digesting U.S. GDP Q3 data and fresh jobless claims numbers from this morning.

Live 24 hours gold chart [Kitco Inc.]

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