(Kitco News) - The gold market continues to consolidate above $2,000 an ounce as the U.S. housing market tries to find its feet as construction of single-family homes surges in November.
Tuesday, the U.S. Commerce Department said that residential construction increased 14.8% last month to a 1.56 million annualized rate, up from October’s rate of 1.36 million. The latest housing market data significantly beat expectations; according to consensus estimates, economists were looking for starts to remain unchanged.
Construction in the U.S. housing sector has risen to its highest level since April 2022. For the year, housing starts are up 9.3%.
The latest housing data is having little impact on the gold market as prices trade in elevated neutral territory. Spot gold last traded at $2,030.30 an ounce, up 0.15% on the day.
Although the construction sector saw an improvement last month, building permits, an indication of future development, remain relatively lackluster.
The report said the pace of issued building permits dropped to 1.46 million, down from October’s rate of 1.50 million. The drop was relatively in line with expectations.
Economists have been closely monitoring the U.S. housing sector as it has struggled with rising mortgage rates and higher prices. However, with the Federal Reserve expected to cut rates in 2024, many economists expect to see a recovery in the housing sector, which would provide solid support for the economy.
