(Kitco News) - Improved sales in the U.S. housing sector are having little impact on the gold market, as prices continue to attract bargain hunting after holding critical support above $4,000 an ounce.
Total existing-home sales — including single-family homes, townhomes, condominiums, and co-ops — rose 1.5% to a seasonally adjusted annual rate of 4.06 million in September, the National Association of Realtors (NAR) announced on Thursday. The data increased in line with expectations.
The gold market is paying little attention to limited U.S. economic data as it continues to react to shifting technical momentum in the marketplace. The precious metal is trying to stabilize after experiencing its biggest selloff in years. Spot gold last traded at $4,147.20 an ounce, up more than 1% on the day.
The housing sector has improved as the Federal Reserve restarted its easing cycle, cutting interest rates last month.
"As anticipated, falling mortgage rates are lifting home sales," said NAR Chief Economist Dr. Lawrence Yun. "Improving housing affordability is also contributing to the increase in sales."
The inventory of homes for sale is also starting to improve; however, the report notes that home prices remain elevated.
The report said the median existing-home price for all housing types was $415,200 last month, up 2.1% from a year ago.
Meanwhile, the supply of homes for sale rose to 1.55 million units, up 14% from last year. The current inventory represents a 4.6-month supply.
