(Kitco News) - Gold prices are trading at session lows on Friday morning after the latest U.S. housing construction data fell further than expected last month.
Housing starts declined by 14.8% in January to a seasonally adjusted annual rate of 1.331 million units, the Commerce Department said on Friday. The data came in much lower than expected as economists looked for an increase to 1.470 million units. At the same time, December's data was revised upward to a rate of 1.562 million units from the previously reported 1.460 million units.
For the year, housing construction is down 0.7% compared to activity in January 2023.
The report said that building permits for future homebuilding declined 1.5% to a rate of 1.470 million last month, which was also lower than the consensus expectation for a rise to 1.509 million permits. December’s print was unrevised at 1.493 million units. For the year, building permit issuances were still up 8.6% from the January 2023 level.
The gold market fell to session lows following the 8:30 am EST release of the housing data. Spot gold last traded at $1,995.84 an ounce, down 0.42% on the day and not far from the session low of $1,995.16.
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.
