Gold prices down but off their lows following 1.8% drop in U.S. pending home sales data
(Kitco News) - The gold market is off its lows but continues to see some technical selling pressure even as fewer American’s start the process to buy a new home.
The U.S. pending home sales index showed a reading of 110.70 down 1.8% in July following June’s drop of 1.8% the National Association of Realtors (NAR) said Monday. The latest housing market data significantly missed expectations as consensus forecasts expected a 0.5% increase.
The gold market appears is finding some support following the latest economic data even as it sees some technical selling pressure after prices surged through $1,800 an ounce Friday. December gold futures last traded at $1,817.80 an ounce, down 0.10% on the day.
For the year pending home sales index is down 8.5%.
“The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers,” said Lawrence Yun, NAR’s chief economist. “That said, inventory is slowly increasing and home shoppers should begin to see more options in the coming months.
Economists pay close attention to the pending home sales numbers because the index is seen as a forward-looking barometer for the housing market. A lag of a month or two usually exists between a contract and a completed sale