(Kitco News) - Gold prices are trading at fresh session lows after the latest data showed the U.S. housing market broke a four-month streak of declines and met expectations in July.
Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 1.3% to a seasonally adjusted annual rate of 3.95 million in July. The 1.3% rise was in line with expectations, while the total number expected was 3.93 million. The number was also higher than the revised 3.90 million recorded in June. Year-over-year, sales were down 2.5% compared to July 2023.
Spot gold fell to a new session low of $2,479.34 in the minutes after the housing data was released for a loss of 1.31% on the day at the time of writing.
“Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
Total housing inventory was 1.33 million units at the end of July, up 0.8% from June and 19.8% from the 1.11 million units from July of 2023. Unsold inventory now sits at a 4.0-month supply at the current sales pace, down from 4.1 months in June but up from 3.3 months in July of 2023.
The median existing-home price for all housing types was $422,600 in July, up 4.2% from the $405,600 posted one year ago. All four U.S. regions posted price increases.
Economists continue to pay close attention to the U.S. housing market as it is a major contributor to economic activity. The housing sector has struggled as the Federal Reserve has aggressively raised interest rates at the fastest pace in 40 years, but the central bank is expected to embark on a rate-cutting cycle beginning in September.
