(Kitco News) - Gold prices are trading higher on Friday morning after the latest data showed the U.S. housing market improved far beyond expectations in April.
New home sales increased 10.9% last month, much better than the expected -4.7% decrease, following an unrevised 7.4% rise in March, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced.
New home sales came in at a seasonally adjusted annualized rate of 743,000 in April. The numbers were significantly better than forecasts, as market consensus calls expected sales of 692,000 units. March’s sales were unrevised at 724,000 units.
On an annual basis, new home sales were up 3.3% from the April 2024 estimate of 719,000.
Looking at home prices, the median sales price for new homes last month was $407,200, and the average sales price was $518,400. As of the end of April, the inventory of houses for sale was 504,000, representing an 8.1-month supply at the current sales rate.
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 after the Federal Reserve aggressively raised interest rates at the fastest pace in 40 years.
Along with rising mortgage rates, a lack of supply has kept housing prices elevated, pricing many potential new home buyers out of the market.
Spot gold rose session low immediately after the 10 am EDT release, and last traded at $3,347.12, up 1.58% on the day.
