Strong rise in U.S. new home sales drag gold prices lower
(Kitco News) - The U.S. housing market continues to fire on all cylinders as consumers continue to buy new homes at an unprecedented pace.
According to some analysts, the better than expected new home sales data are driving bond yields higher, which in turn is weighing on gold prices.
On Wednesday, the Commerce Department said new home sales rose 4.3% to a seasonally adjusted annual rate of 923,000 units last month. The data significantly beat expectations as consensus forecasts were calling for a sale rate of around 853,000.
New home sales are counted at the signing of a contract, making them a leading housing market indicator.
The better-than-expected housing numbers pushed gold prices to session lows. April gold futures last traded at $1,787.40 an ounce, down 1% on the day.
Looking at home prices, the report said the median sales price of new houses sold in January 2021 was $346,400. The average sales price last month was $408,800.
Looking at the supply of new home sales, the report said that the inventory of new houses for sale at the end of January was 307,000, representing a 4-month supply at the current sales rate.