Gold price ignores stronger rise in U.S. housing construction data
(Kitco News) - The gold market remains under pressure, but is seeing little reaction to better than expected U.S housing construction data.
The housing sector has been a significant pillar of strength for the U.S. economy as it continues to feel the devastating effects of the COVID-19 pandemic.
Wednesday, the U.S. Commerce Department said housing starts rose 4.6% to a seasonally adjusted annual rate of 1.53 million units in October, following September’s upwardly revised estimate of 1.459 million starts. The data were much better than expected; economists were expecting to see an annual construction rate of 1.45 million.
The report noted that housing construction is more than 14% higher compared to October 2019.
Meanwhile, building permits data, which is a precursor to future projects, were virtually unchanged last month at 1.545 million issued in October. Economists were expecting to see about 1.57 million permits issued last month.
Gold prices have been struggling to find some buying momentum as prices remain well below $1,900. Although the precious metal remains under pressure the latest economic data is having little impact on prices. December gold futures last traded at $1,872.70 an ounce, down 0.65% on the day.