(Kitco News) - The gold market continues to consolidate around $2,400 an ounce as the U.S. housing market continues to stagnate at a lower level, with fewer new buyers entering the marketplace, according to the latest sales data from the National Association of Realtors (NAR).
Thursday, the NAR said that existing home sales fell 4.3% to a seasonally adjusted annual rate of 4.19 million, down from March's sales rate of 4.38 million. The sales data fell in line with economists' expectations.
The gold market continues to see solid technical momentum as it largely ignores the disappointing housing data. June gold futures last traded at $2,399.60 an ounce, up nearly 0.5% on the day.
"Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves," said NAR Chief Economist Lawrence Yun. "There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market."
Although the economy and labor market remain relatively robust, some economists note that higher inflation, forcing the Federal Reserve to maintain its aggressive monetary policy, is weighing on consumer activity for large purchases.
Higher inflation data published last week has prompted markets to push back the expected timing of the Federal Reserve's easing cycle. A potential June rate cut has been priced off the table. Elevated interest rates continue to support higher mortgage rates.
At the same time, consumers face rising home prices due to low supply.
The report said that the total supply of homes for sale at the end of March was 1.11 million units, up 4.7% from February and 14.4% from one year ago. Unsold inventory sits at a 3.2-month supply at the current sales pace.
"More inventory is always welcomed in the current environment," Yun added. "Frankly, it's a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise."
Looking at prices, the report said that the median price for all housing types in March was $393,500, an increase of 4.8% from 2023.
