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Gold prices remain in negative territory following 0.4% drop in U.S. new home sales

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(Kitco News) - The gold market can't catch a bid even as fewer consumers bought new homes last month. According to some economists, the latest sales data highlights slower momentum in the housing sector, a pillar of strength through the pandemic.

The Commerce Department said on Wednesday new home sales fell 0.4% to a seasonally adjusted annual rate of 745,000 million units last month.

For the year, new home sales are down more than 23%, the report said. New home sales are counted at the signing of a contract, making them a leading housing market indicator.

The gold market is seeing some modest selling pressure as markets largely ignore the latest housing data and focus on better-than-expected consumption data. December gold futures last traded at $1,779.30 an ounce, down 0.25% on the day.

Looking at home prices, the report said that the median sales price of new houses sold in October 2021 was $407,700. The average sales price was $477,800.

The report also said that the supply of new homes for sale was 389,000 units, representing a 6.3-month supply.

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