(Kitco News) - The gold market remains unable to attract new safe-haven momentum, even as the U.S. housing sector continues to struggle due to a decline in new home purchases.
New home sales rose by only 0.6% last month, reaching a seasonally adjusted annualized rate of 627,000 units—up slightly from May’s revised rate of 623,000—according to a report released Thursday by the U.S. Census Bureau and the Department of Housing and Urban Development.
Economists had expected a stronger showing, with consensus estimates forecasting a sales rate of 649,000 units.
On a year-over-year basis, new home sales are down 6.6%, the report noted.
Despite further disappointing news from the housing market, the gold market is not seeing any significant buying momentum, as traders continue to take profits following prices rising above $3,400 an ounce earlier in the week.
Spot gold last traded at $3,367 an ounce, down 0.55% on the day.
Economists warn that continued weakness in the housing market does not bode well for overall economic activity. The sector remains under pressure as consumers contend with elevated home prices and high mortgage rates.
Although U.S. home prices remain elevated, the report shows signs of a downturn. The median sales price of new houses sold in June 2025 was $401,800—down 4.9% from May and 2.9% from a year earlier. Meanwhile, the average sales price was $501,000, down 2% from May and 1.1% from June 2024.
Housing prices may continue to decline as the supply of homes for sale increases. As of the end of June, the inventory of houses on the market stood at 511,000, up 1.2% from May. This represents a 9.8-month supply at the current sales pace.
