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Gold prices holding steady as U.S. new home sales hold near 14-year highs

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(Kitco News) - Gold prices continue to hold above critical support around $1,800 an ounce even as the U.S. housing sector remains a pillar of strength in the economy, with new home sales holding near a 14-year high in October.

The Commerce Department said on Thursday new home sales fell by 0.3% to a seasonally adjusted annual rate of 999,000 units last month. Despite the small drop from September’s record level, new home sale beat expectations. Consensus forecasts called for home sales to fall to 972,000 units.

For the year, the report said that new homes sale are up 41.5% compared to October 2019.

The gold market is trying to hold on to its earlier gains but is struggling to attract new bullish momentum. December gold futures last traded at $1,811 an ounce, up 0.35% on the day.

Looking at prices for new homes, the report said that the median sales price of new houses sold in October 2020 was $330,600. The average sales price was $386,200.

Economists have noted that home prices have gone up as the supply of homes for sale have dropped this year. The report said that the supply of new homes for sale as of the end of October were 278,000, representing a 3.3-month supply.

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