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U.S. new home beat expectations in January, gold price edges up from daily lows

Kitco News

(Kitco News) Gold ticked up as the U.S. new home sales surprised on the upside in January with a jump of 7.2%. The prior month’s number was also revised higher.

New home sales were at a seasonally adjusted annualized rate of 670,000 homes last month, the U.S. Commerce Department said on Friday. December’s sales were revised up to a rate of 625,000 units.

Market consensus calls projected sales to drop to 620,000 units in January.

On an annual basis, new home sales were down 19.4% from last year’s January estimate of 831,000 units.

Looking at home prices, the report said that the median sales price for homes sold last month was $427,500, while the average price was $474,400.

As of the end of January, the inventory of houses for sale was at 439,000, representing a 7.9-month supply at the current sales rate.

Gold edged up from daily lows following the release of the data, with April Comex gold futures last trading at $1,820.10, down 0.37% on the day.

The gold market was also digesting the annual core PCE price index, the Federal Reserve's preferred measure of inflation, rising 4.7% versus the expected slowdown to 4.3%. For December, the core PCE price index was upwardly revised to 4.6%. 

Live 24 hours gold chart [Kitco Inc.]

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