(Kitco News) - The gold market continues to the high ground above $2,400 an ounce, supported by further weakness in the U.S. housing sector as consumers hesitate to buy new homes.
New home sales declined 0.6% last month to a seasonally adjusted annual sales rate of 617,000 homes, below May’s rate of 621,000, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced Wednesday.
The data came in weaker than expected as economists were looking for the sales rate to rise to 639,000 homes.
For the year new home sales are down 7.4%, the report said.
The gold market is not seeing much reaction to the disappointing housing data. August gold futures last traded at $2,422.80 an ounce, up 0.65% on the day.
While the data was disappointing, many analysts have said that weakness in the housing market is no longer a major surprise for markets. The Federal Reserve's aggressive interest rate stance, which has supported elevated mortgage rates and rising home prices have priced many potential new home buyers out of the market.
Looking at the cost of new homes, the report said The median sales price of new houses sold in June 2024 was $417,300; at the same time, the average sales price was $487,200.
However, some economists are expecting prices to start to fall as the supply of new homes remains elevated. The report said as of the end of June there was an inventory of 476,000 homes for sale, representing a 9.3-month supply.
