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(Kitco News) -The gold market is not seeing a lot of support news as data from the beleaguer housing market comes in better than expected.
The U.S. pending home sales index rose 0.3% in June, following a drop of 2.5% in May the National Association of Realtors (NAR) said on Thursday. The consensus forecast called for a decline of 0.5%.
The report noted that this is the first increase in mortgage signings since February. NAR Chief Economist Lawrence Yun said that the data could signal a bottom in the housing market.
"The recovery has not taken place, but the housing recession is over," said Yun, in the report. "The presence of multiple offers implies that housing demand is not being satisfied due to lack of supply. Homebuilders are ramping up production and hiring workers."
The gold market, trading near session lows, is not seeing much of a reaction to the latest housing market data as it continues to react to currency volatility following the European Central Bank’s monetary policy decision. August gold futures last trade $1,944.40 an ounce, down 1.30% on the day.
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.
