(Kitco News) - Gold prices are trading near session highs this morning after the latest data showed the U.S. housing market improving more than expected in November and December.
Housing starts rose 3.9% in November to a seasonally adjusted annual rate of 1.322 million units, the Commerce Department announced on Wednesday. The data was better than expected as economists looked for a decrease to 1.270 million units. October’s number was 1.246 million units.
Housing starts also rose in December to a seasonally adjusted annual rate of 1.448 million units. The data was better than expected as economists looked for a reading of 1.400 million units.
The report said that building permits for future homebuilding fell -1.6% to a rate of 1.388 million in November, which was better than the consensus expectation for 1.360 million permits, and December's figure was 1.448 million against an expectation for 1.400 million.
Gold prices shot higher following the 8:30 am EST housing data, spiking to a session high of $4,969.10 per ounce. Spot gold last traded at $4,954.34 per ounce for a gain of 1.57% 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.
