(Kitco News) - Gold prices are trading just off session highs on Tuesday morning after the latest data showed the U.S. housing market improved beyond expectations in February and March, though large downward revisions to January were also registered.
New home sales rose 8.9% in February, much better than the expected 3.9% increase, but following a revised decrease of -19.9% in January, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced.
New home sales also rose 7.4% in March against expectations for a 4.9% rise. The two months were released at the same time as the Federal government catches up on data following the U.S. government shutdown.
New home sales came in at a seasonally adjusted annualized rate of 685,000 in February. The numbers were better than forecasts, as the market consensus expected sales of 610,000 units. January’s sales were revised to 583,000 units.
March new home sales totaled 682,000 against an expectation of 650,000 units.
Economists continue to pay close attention to the U.S. housing market as it is a major contributor to economic activity. The housing sector has struggled in recent years after the Federal Reserve aggressively raised interest rates at the fastest pace in 40 years.
Along with rising mortgage rates, a lack of supply has kept housing prices elevated, pricing many potential new home buyers out of the market.
Spot gold rose to a session high of $4,585.20 per ounce just after the 10 am ET release, and last traded at $4,579.03, up 1.21% on the day.
