(Kitco News) - The gold market continues to trade in relatively neutral territory, holding initial support above $3,350 an ounce, even as the U.S. housing sector saw increased activity last month.
According to data released Friday by the Commerce Department, housing starts rose 4.6% in June to a seasonally adjusted annual rate of 1.321 million units, up from May’s downwardly revised rate of 1.263 million. The figures exceeded expectations, as economists had projected a more modest increase to 1.29 million units.
However, over the past 12 months, residential construction activity has declined by 0.5%.
Despite the latest housing market data, the gold market is showing limited reaction, remaining near session highs. Spot gold last traded at $3,357.80 an ounce, up 0.58% on the day.
Single-family housing starts fell 4.6% in June to an annual rate of 883,000, down from the revised May estimate of 926,000.
Although construction activity picked up overall in June, signs of continued weakness persist. The report showed building permits—a key indicator of future construction—increased by just 0.2% to 1.397 million, slightly above May’s revised level of 1.394 million. The data was broadly in line with economists’ expectations.
Markets remain closely focused on the housing sector, a crucial component of the broader economy. The sector has faced headwinds in recent years as consumers contend with heightened costs on two fronts: the Federal Reserve’s elevated interest rates have driven mortgage rates higher, while limited housing inventory has pushed home prices up.
