(Kitco News) - The gold market could see further near-term profit-taking as U.S. consumers appear to be jumping back into the housing market, easing fears that the economy could fall into a recession.
New home sales jumped 20.5% last month, reaching a seasonally adjusted annualized rate of 800,000 homes, up from July’s revised rate of 664,000, according to a report released Wednesday by the U.S. Census Bureau and the Department of Housing and Urban Development.
New home sales are up 15.4% over the past 12 months, the report said. Meanwhile, the pace of sales has reached its highest level since February 2022.
The gold market is not seeing a significant reaction to the strong housing data. It continues to experience technical profit-taking after pushing closer to $3,800 during the overnight session. Spot gold last traded at $3,761.40 an ounce, roughly unchanged on the day.
Economists have said they expect the housing market to improve as the Federal Reserve restarts its easing cycle. However, prices for new homes remain elevated as inventory levels stay low.
At the end of August, the supply of new homes totaled 490,000, down 1.4% from July. This represents a 7.4-month supply.
Meanwhile, the report said the median sales price of new houses sold in August 2025 was $413,500, up 4.7% from July and 1.9% from last year. At the same time, the average sales price of new houses sold in August 2025 was $534,100, up nearly 12% from July and 12.3% compared to August 2024.
