Gold price holding strong gains despite 19% rise in U.S. housing construction data
(Kitco News) - The gold market continues to see strong bullish momentum and is seeing little movement from stronger than expected U.S. housing construction data.
Housing starts jumped 19.4% to a seasonally adjusted annual rate of 1.74 million units last month, the Commerce Department said on Friday. The data significantly beat expectations. Economists had forecast starts would rise to 1.64 million units in March.
For the year housing construction is up a whopping 37% compared to March 2020.
Meanwhile, building permits data, which is a precursor to future projects, was up 2.7% at 1.77 million in March. For the year, building permits rose more than 30% from last year’s levels.
The U.S. housing market has been a major pillar of support for the U.S. economy as it continues to recover from the COVID-19 pandemic. The latest positive data is having little impact on gold prices. June gold futures last traded at $1,783 an ounce, up 0.92% on the day.
The gold market is seeing strong technical buying momentum after prices pushed to nearly a 2-month high Thursday.