(Kitco News) - Gold prices are rising this morning after the latest data showed the U.S. housing market declining more than expected last month.
Housing starts fell -8.5% in August to a seasonally adjusted annual rate of 1.307 million units, the Commerce Department announced on Wednesday. The data was far worse than expected as economists looked for a decrease of -3.4% to 1.370 million units. July’s number was revised to 1.429 million units.
For the year, housing construction is down 6% from the August 2024 rate of 1.391 million
The report said that building permits for future homebuilding fell -3.7% to a rate of 1.312 million last month, which was far worse than the consensus expectation for a 0.6% rise to 1.370 million permits. July’s print was unrevised at -2.2% and 1.362 million units. For the year, building permit issuances were 11.1% below the August 2024 rate of 1.476.
Gold prices rose following the 8:30 am EST housing data, but remained in negative territory on the session. Spot gold last traded at $3,673.16 per ounce for a loss of 0.45% on the daily chart.
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.
