(Kitco News) - Gold prices are trading near session highs on Thursday morning as the latest data showed the U.S. housing market rebounding in December.
New home sales increased 8% last month, exactly in line with expectations, after an upwardly revised -9% print in November, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said on Friday.
New home sales came in at a seasonally adjusted annualized rate of 664,000 in December. The numbers were higher than forecast, as market consensus calls expected sales to come in at 645,000 units last month. November’s sales were also revised upward to a rate of 615,000 from 590,000 units.
On an annual basis, new home sales were up 4.4% from the December 2022 estimate of 636,000. An estimated 668,000 new homes were sold in 2023, which is 4.2% above the 2022 total of 641,000.
Looking at home prices, the median sales price for new homes sold last month was $413,200, and the average sales price was $437,300. As of the end of December, the inventory of houses for sale was 453,000, representing an 8.2-month supply at the current sales rate.
Economists continue to pay close attention to the U.S. housing market as it is a major contributor to economic activity. The housing sector has struggled as the Federal Reserve has aggressively raised interest rates at the fastest pace in 40 years.
Along with rising mortgage rates, a lack of supply has kept housing prices elevated, pricing many potential new home buyers out of the market.
Spot gold rose to a fresh session high of $2,025.32 just before the 10 am EST release, and last traded at $2,024.15, up 0.49% on the day.
