(Kitco News) - The gold market continues to hold firm with an eye on $2,800 even as the U.S. housing sector shows some initial signs of stabilizing as more consumers than expected started the process of buying a new home, according to the latest data from the National Association of Realtors (NAR).
The U.S. pending home sales index rose 7.4% in September, the NAR announced on Wednesday, following a 0.6% increase in August. The data was better than forecasted, as economists expected only a 1.9% increase.
Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices. Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady,” said NAR Chief Economist Lawrence Yun in the report.
Pending home sales, caps a fairly busy morning for data reports, which has showed a fairly resilient economy that continues to grow and add jobs.
However, the economic data is not creating any headwinds for the gold market as it continues to see solid momentum. December gold futures last traded at $2,789 an ounce , up 0.28% on the day.
Economists pay close attention to pending home sales because the report is a leading indicator of existing home sales given that contracts are signed a few months before homes are actually sold.
The U.S. housing market has been trying to stabilize after seeing significant weakness through most of 2023 and early 2024. Many potential home buyers have been priced out of the market due to rising prices and higher mortgage rates.
