(Kitco News) - The gold market continues to surge, with prices trading near fresh all-time highs, even as the U.S. housing sector shows signs of stabilizing, albeit at diminished levels.
Housing starts fell by 0.5% in September to a seasonally adjusted annual rate of 1.354 million units, down from August's construction rate of 1.36 million units, the Commerce Department said on Friday. The data was roughly in line with expectations.
For the year, the report indicated that the pace of residential construction was down 0.7% compared to September 2023 estimates.
The gold market is not reacting significantly to the latest economic data, as it continues to see solid buying momentum. December gold futures last traded at $2,730.20 an ounce, up nearly 1% on the day.
While residential construction appears to be stabilizing, the housing sector remains weak, as permits for new construction continue to decline.
The report also noted that building permits for future homebuilding slid 2.9% to a rate of 1.428 million in September, down from August's revised level of 1.47 million. However, the decline was in line with economists' expectations.
For the year, building permit issuances were down 5.7% from the September 2023 level.
According to some market analysts, the housing data should continue to support gold's robust uptrend, as it points to subdued economic activity.
