Gold prices holding on to gains following mixed U.S housing construction data
(Kitco News) - The gold market is hold on to modest gains but seeing little reaction to mixing U.S. housing construction data.
U.S. housing starts rose 6.3% to a seasonally adjusted annual rate of 1.64million units in June, the Commerce Department said on Tuesday. The data beat expectations as economists were expecting to see an annual construction rate of 1.59 million homes. May’s data was revised slightly lower to f 1.55 million units.
For the year housing construction is up more than 29%, the report said.
Meanwhile, building permits which is a precursor to future projects, fell 5.1% to 1.598 million in June, down from May’s revised total of 1.683 million. For the year, building permits are up more than 23%.
The gold market is not seeing much reaction to the latest economic data as it continues to see some technical buying momentum after bouncing off support at $1,800 an ounce. August gold futures last traded at $1,822.70 an ounce, up 0.75% on the day.
Although construction data was stronger than expected, Katherine Judge, senior economist at CIBC, said that the permit data does not bode well for future growth.
“It’s apparent that housing activity will no longer be the growth contributor that it has been throughout most of the pandemic going forward,” she said.