(Kitco News) - Gold prices continue to consolidate above $5,100 an ounce as the market finds little inspiration from mixed U.S. housing construction data.
Housing starts jumped more than 7% in January to a seasonally adjusted annual rate of 1.487 million units, following December’s revised rate of 1.387 million units, the Commerce Department announced on Thursday. The data was better than expected, as economists had anticipated a drop to 1.34 million.
Construction activity is up more than 9% over the last 12 months.
However, the housing market could continue to struggle as permits for housing starts declined in January, pointing to slower activity in the spring. The report said that building permits dropped more than 5% in January to a rate of 1.376 million, compared to December’s revised rate of 1.455 million.
The building permit numbers were weaker than expected, as economists were looking for a smaller decline to 1.42 million.
The gold market is not paying much attention to the latest housing market data. The precious metal continues to trade in roughly neutral territory. Spot gold last traded at $5,182.20 an ounce, nearly unchanged on the day.
The U.S. housing market has struggled as the Federal Reserve has been reluctant to lower interest rates, which have kept mortgage rates elevated. The market has seen some increased activity in recent months as the U.S. central bank cut rates three times in the second half of 2025.
However, the current interest rate path has become less defined as rising energy prices, due to the U.S.-Israel war against Iran, threaten to drive inflation higher.
