(Kitco News) - The gold market is finding some bullish support following disappointing economic growth in the first quarter, and the precious metal could attract a further bid after weaker-than-expected U.S. new home sales.
New home sales fell 6.2% in April to a seasonally adjusted annual rate of 622,000, down from March’s sales rate of 663,000, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced Thursday.
The drop was significantly more than expected, as economists were forecasting a relatively stable housing market with a sales rate of 661,000.
For the year, new home sales are down 11.3%.
The gold market is not seeing much reaction to the disappointing housing data. Spot gold last traded at $4,437.60 an ounce, down 0.40% on the day.
The precious metal has already made some significant gains ahead of the North American market open.
In the European session, gold prices hit a low of $4,366 an ounce, falling below its 200-day moving average.
The U.S. housing market continues to face significant headwinds as rising prices force many potential buyers out of the marketplace. Not only are home prices rising, but the growing inflation fear is driving interest rate expectations higher, pushing mortgage rates up.
The report said that the median sales price of new houses sold in April 2026 was $422,500, up 8.0% from March. For the year, home prices are up 2.2%.
U.S. home prices have risen as the supply of new units has been restrained. The report said that the inventory of new homes for sale was 489,000 as of the end of April. At the current sales rate, this represents a 9.4-month supply.
