(Kitco News) - Gold prices are trading near session highs this morning after the latest data showed the U.S. housing market delivering a weaker-than-expected performance last month.
Housing starts fell 2.6% in July to a seasonally adjusted annual rate of 1.275 million units, the Commerce Department announced on Thursday. The data was worse than expected as economists looked for a rise to 1.310 million units. July’s number was also revised down to 1.309 million units.
The report said that building permits for future homebuilding fell 2.7% to a rate of 1.394 million in August, which was worse than the consensus expectation for 1.410 million permits, while July's figure was unrevised at 1.433 million.
Gold prices were trading near session highs in the minutes before the 8:30 am ET housing data. Spot gold last traded at $4,363.56 per ounce for a gain of 2.34% 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.
