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Gold price remains near $1,800 following 3.8% drop in U.S. pending home sales

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(Kitco News) - The gold market remains solidly in negative territory and can’t find any bullish traction even as fewer U.S. consumers start the process of buying a home, according to the latest data from National Association of Realtors (NAR).

U.S. pending home sales dropped 3.8% in December, following November’s drop of 2.2%, the NAR said on Thursday. The data was much worse than expected as consensus forecasts called for a decline of 0.9%.

For the year pending home sales are down 6.9%.

The gold market is not seeing much movement following the latest U.S. housing sales data. February gold futures last traded at $1,805 an ounce, down 1.35% on the day. 

This was the second consecutive month pending home sales declined, the report said.

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"Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options," said Lawrence Yun, NAR's chief economist. "Mortgage rates have climbed steadily the last several weeks, which unfortunately will ultimately push aside marginal buyers."

Looking ahead, Yun said that the housing market could struggle as rising interest rates wil push mortgages higher.

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