(Kitco News) - The gold market remains under pressure but continues to hold support above $2,150 an ounce even as the U.S. housing sector shows some signs of stabilization as construction of new homes picks up.
Tuesday, the U.S. Commerce Department said that residential construction jumped 10.7% last month to a 1.521 million annualized rate, up from January’s revised rate of 1.374 million. The latest housing market data significantly beat expectations; according to consensus estimates, economists were looking for starts to rise to 1.43 million.
For the year, housing construction is up 5.9%, the report said.
The gold market is not reacting much to the latest housing market data as it continues to see some solid technical selling pressure. April gold futures last traded at $2,157.70 an ounce, down 0.30% on the day.
Along with healthy construction, a solid rise in building permits points to further activity in the housing sector.
The report said the pace of issued building permits rose to 1.518 million, up 1.9% from 1.489 million permits issued in January. The increase was relatively in line with economists’ expectations.
Economists have been closely monitoring the U.S. housing sector as it has struggled with rising mortgage rates and higher prices. Economists note that any improvement in the housing sector should further support the economy.
Looking at the components of the report, demand for single-family homes continues to drive the market. The construction of single-family homes increased by 11.6% last month to a rate of 1.129 million. Meanwhile, the rate for buildings with five or more apartments was 377,000.
