Gold price holding steady as U.S. spending home sales jump 7.5% in October, housing market to see best year in 15 years
(Kitco News) - Gold prices are holding in neutral territory despite strong momentum in the housing sector as more consumers-than-expected started the process to buy a home in October.
The U.S. pending home sales jumped 7.5% in October, the National Association of Realtors (NAR) said on Monday. The consensus forecast called for an advance of 0.8%.
The pending home sales index rose to 125.2 last month. However, the report said that on an annual basis, pending home sales were also down 1.4% from June 2020.
“Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later," said Lawrence Yun, NAR's chief economist. "This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.”
Yun added that the pending home sales numbers will solidifies sale expectations of more than 6 million home sold this year. He added that the housing market is on pace for its best annual performance in 15 years.
Despite the better-than-expected economic news gold prices are holding in neutral territory. February gold futures remain within striking distance of $1,800 an ounce, last trading at $1,789.40 an ounce.
Looking ahead, Yun said that home prices will continue to rise but at a gentler pace. He also said that demand could fall in the next several months as consumers look for interest rates to start moving higher.