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(Kitco News) - Gold prices continue hold solid support above $2,000 but is seeing little reaction to mixed health in the U.S. housing sector as the number of homes built last month fell roughly in line with expectations.
Housing starts fell 0.8% to a seasonally adjusted annual rate of 1.42 million units last month, the Commerce Department said on Tuesday. At the same time, data for February data was revised lower to rate of 1.432 million units from the previously reported 1.45 million units.
For the year home construction is down 17.2% the report said.
For some economists, ongoing weakness in the housing sector comes as little surprise as the sector continues to feel the effects of the Federal Reserve’s aggressive monetary policy stance, which has driven mortgage rates higher this past year.
The gold market is not seeing much reaction to the latest economic data as investors and traders continue to bargain hunt in the marketplaces after prices briefly dropped below $2,000 an ounce Monday. June gold futures last traded at $2,015.20 an ounce, up 0.41% on the day.
Along with the in line drop in the housing starts, the March data does not point to any significant recovery anytime soon.
Permits for future homebuilding fell more than expected, dropping 8.8% to a rate of 1.412 million units in March. Economists were expecting to see a rate of 1.46 million permits. February data was revised lower to 1.55 million units, up slightly from the previous estimate of 1.52 million permits.
For the year construction permits are down 24.8% compared to March 2022, the report said.
