Gold prices steady as U.S. housing starts rise 1.9% in October
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(Kitco News) - Gold prices are holding steady as the precious metal sees little reaction to the latest U.S. housing construction data.
Housing starts rose by 1.9% in October to a seasonally adjusted annual rate of 1.372 million units, the Commerce Department said on Friday. The data came in better than expected as economists looked for a decrease to 1.340 million units. September's data was downwardly revised to 1.346 million units from the initial 1.358 million units.
For the year, housing construction is down 4.2% compared to activity in October 2022.
The report said that building permits for future homebuilding rose 1.1% to a rate of 1.487 last month, which was better than the consensus expectation for a decline of 1.5%. September’s print was downwardly revised to 1.471 million from the initial 1.473 million units. For the year, building permit issuances are down 4.4%.
The gold market saw some selling pressure following the housing data, but has since rebounded. Spot gold last traded at $1,986.03 an ounce, up 0.23% on the day
The U.S. housing sector significantly contributes to the nation's Gross Domestic Product, and it remains a significantly weak pillar of the economy as persistently higher prices and elevated mortgage rates due to the Federal Reserve's aggressive tightening cycle have pushed many new home buyers out of the marketplace.