(Kitco News) - The gold market continues to see modest selling pressure, the result of some profit-taking after testing resistance at $4,700 an ounce overnight; however, according to some analysts, the precious metal remains well supported as an important safe-haven asset as the U.S. housing sector continues to struggle.
New home sales dropped 10.5% last month, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced.
New home sales came in at a seasonally adjusted annualized rate of 607,000 in July. The numbers were significantly weaker than forecasts, as the market consensus expected sales of 620,000 units. June’s sales were also revised up to 678,000.
On an annual basis, new home sales were down 6.3% from the July 2025 rate of 648,000.
The gold market is not seeing any significant reaction to the disappointing housing market data. Spot gold last traded at $4,618.80 an ounce, down 0.68% on the day.
The U.S. housing market continues to be an important drag on the U.S. economy as the sector faces rising mortgage rates and elevated prices, keeping many potential homebuyers out of the market.
Although expectations for rate hikes have been pared back in recent weeks, markets are still pricing in one rate hike this year. The Federal Reserve is also maintaining a tightening bias because of persistent inflation fears.
The report noted that slowing demand is starting to have an impact on prices. The median sales price of new houses sold in July 2026 was $393,800, down 2.3% from June; however, the average sales price of new houses sold last month was $508,800, up 4.1% compared to June.
Economists expect home prices to moderate further as the supply of homes increases. The report said that the inventory of new homes for sale at the end of the month was 488,000, representing a 9.6-month supply.
