(Kitco News) - The gold market is holding near session highs even as the U.S. housing market gets some good news, with consumers appearing to be reentering the market, according to the latest data from the National Association of Realtors (NAR).
The U.S. pending home sales index rose by 4.8% in June, the NAR announced Wednesday, after May’s upwardly revised decline of 1.9%. The data was much better than forecasts, as economists were expecting to see a 1.4% increase.
"The rise in housing inventory is beginning to lead to more contract signings," said NAR Chief Economist Lawrence Yun. "Multiple offers are less intense, and buyers are in a more favorable position."
The gold market is holding on to its recent gains, largely ignoring economic data. August gold futures last traded at $2,421.80 an ounce, up 0.70% on the day.
Although the housing market is seeing some initial signs of stability, the sector still has a long road to recovery. For the year, contract signing is down 2.8%.
The Pending Home Sales Index is seen as a leading indicator for the housing sector. The index is based on pending sales of existing homes; a sale is listed as pending when the contract has been signed but the transaction has not closed. The index usually leads final sales by a month or two.
