(Kitco News) - Gold prices are trading at session highs this morning after the latest data showed the U.S. housing market declining more than expected in September and October.
Housing starts fell 4.6% in September to a seasonally adjusted annual rate of 1.306 million units, the Commerce Department announced on Friday. The data was worse than expected as economists looked for a decrease to 1.330 million units. August’s number was unrevised at 1.307 million units.
Housing starts also fell in October to a seasonally adjusted annual rate of 1.246 million units. The data was far worse than expected as economists looked for a decrease to 1.330 million units.
The report said that building permits for future homebuilding fell 0.2% to a rate of 1.415 million in September, which was better than the consensus expectation for 1.350 million permits, and October's figure was 1.412 million against an expectation for 1.350 million. August's print was revised to 1.330 million units.
Gold prices shot higher following the 8:30 am EST housing data and flipped into positive territory on the session. Spot gold last traded at $4,489.39 per ounce for a gain of 0.25% on the daily chart.
The U.S. housing sector contributes significantly to the nation's Gross Domestic Product, and it has been a significant drag on the economy as persistent higher prices and elevated mortgage rates resulting from the Federal Reserve's aggressive tightening cycle have pushed many new home buyers out of the market.
