(Kitco News) - Gold prices are trading near session highs on Tuesday morning after the latest U.S. housing construction data declined more than expected last month.
Housing starts declined by 3.1% in October to a seasonally adjusted annual rate of 1.311 million units, the Commerce Department announced on Tuesday. The data came in worse than expected as economists looked for a smaller decrease to 1.330 million units. September saw 1.354 million units.
For the year, housing construction is down 4.0% compared to activity in October 2023.
The report said that building permits for future homebuilding fell 0.6% to a rate of 1.416 million last month, which was also lower than the consensus expectation for 1.430 million permits. September’s print was revised to 1.425 million units. For the year, building permit issuances were down 7.7% from the October 2023 level.
The gold market is trading higher following the 8:30 am EST housing data release. Spot gold last traded at $2,635.18 per ounce, up 0.88% on the day and not far from the session high of $2,639.53.
The U.S. housing sector contributes significantly to the nation's Gross Domestic Product, and it remains a significant drag on the economy as persistent higher prices and elevated mortgage rates from the Federal Reserve's aggressive tightening cycle have pushed many new home buyers out of the market.
