(Kitco News) - The gold market, while off its highs, remains within striking distance of $4,100 an ounce even as the U.S. housing market showed a modest improvement last month. The number of consumers purchasing a home increased more than expected, according to the latest data from the National Association of Realtors (NAR).
Total existing-home sales—including single-family homes, townhomes, condominiums, and co-ops—increased 1.2% in October to a seasonally adjusted annual rate of 4.10 million, the NAR announced Thursday. The sales rate rose more than expected, as economists had been looking for 4.08 million.
Existing-home sales are up 1.7% from October 2024.
“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates," said NAR Chief Economist Lawrence Yun. "First-time homebuyers are facing headwinds in the Northeast due to a lack of supply and in the West because of high home prices. First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses and in the South because there is sufficient inventory."
The gold market remains caught in its broad consolidation pattern. Spot gold last traded at $4,093.90 an ounce, up 0.41% on the day.
Although declining interest rates are pushing mortgage costs lower, weak inventory levels continue to keep prices elevated. The report said existing-home inventories totaled 1.37 million, representing a 4.4-month supply.
Meanwhile, the median existing-home price for all housing types was $406,800, up 2.1% from one year ago.
