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U.S. pending home sales unchanged in April, gold price pares some losses

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(Kitco News) Gold prices ticked higher as the U.S. pending home sales disappointed in April, coming in unchanged.

The U.S. pending home sales came in at 0% in April following a drop of 5.2% in March, the National Association of Realtors (NAR) said on Thursday. The consensus forecast called for an increase of 0.5%.

The pending home sales index remained at 78.9 last month, posting no change from March. On an annual basis, pending home sales were down 20.3% from April 2022.

NAR's chief economist Lawrence Yun said that low inventory levels and affordability concerns continue to weigh on the housing market.

"Not all buying interests are being completed due to limited inventory," said Yun. "Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving."

Economists pay close attention to the pending home sales numbers because the index is seen as a forward-looking barometer for the housing market. A lag of a month or two usually exists between a contract and a completed sale.

Following the data release, gold pared some losses after hitting nine-week lows. June Comex gold futures were last at $1,948.20 an ounce, down 0.83% on the day. Earlier in the session, June futures hit a low of $1,939.20 in the wake of better-than-expected economic data, including Q1 GDP and jobless claims. 

Live 24 hours gold chart [Kitco Inc.]

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