Gold prices remain under pressure following 2% drop in U.S. existing home sales
(Kitco News) - The gold market continues to remain under pressure and below the critical psychological level of $1,800 an ounce even as the U.S. housing sector cools in line with expectations, according to the latest data from the National Association of Realtors (NAR).
Wednesday, the NAR said that existing home sales fell 2% to a sales rate of 5.88 million homes in August, down from July’s sales pace of 5.99 million homes. However, the drop in home sales was in line with economist expectations.
The report note that this is the second month of consecutive declines in home sales. Annual the sales rate is down 1.5% compared to August 2020.
The gold market is not seeing any bullish traction from the drop in existing home sales. December gold futures last traded at $1,774.10 an ounce, down 0.23% on the day.
According to Lawrence Yun, NAR's chief economist sales were down as housing prices rose last month and inventories continued to decline.
"Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory,” he said.
Looking at home prices, the NAR said that the median existing-home price for all housing types in August was $356,700, up 14.9% from last year.
Meanwhile the supply of homes for sales continues to shrink. The report said that the inventory of homes for sale last month totaled 1.29 million units, representing a 2.6-month supply.