(Kitco News) - Gold prices are trading near session highs on Friday morning after the latest U.S. housing construction data declined more than expected last month.
Housing starts fell by 6.8% in July to a seasonally adjusted annual rate of 1.238 million units, the Commerce Department said on Friday. The data came in lower than expected as economists looked for a smaller decrease to 1.33 million units. At the same time, June's data was revised downward to a rate of 1.329 million units from the previously reported 1.353 million units.
For the year, housing construction is down 16% compared to activity in July 2023.
The report said that building permits for future homebuilding slid -4.0% to a rate of 1.396 million last month, which was also lower than the consensus expectation for 1.43 million permits. June’s print was unrevised at 1.454 million units. For the year, building permit issuances were down 7% from the July 2023 level.
The gold market was trading higher in the minutes following the 8:30 am EST housing data release. Spot gold last traded at $2,474.79 per ounce, up 0.74% on the day and not far from the session high of $2,476.70.
The U.S. housing sector contributes significantly to the nation's Gross Domestic Product, and it remains a significant drag on the economy as persistently higher prices and elevated mortgage rates from the Federal Reserve's aggressive tightening cycle have pushed many new home buyers out of the marketplace.
