(Kitco News) - The gold market continues to hold its own, trading in relatively neutral territory even as positive U.S. housing market data reduces safe-haven demand for the precious metal.
Total existing-home sales, including single-family homes, townhomes, condominiums and co-ops, increased 1.5% to a seasonally adjusted annual rate of 3.99 million in September, the National Association of Realtors (NAR) announced Thursday.
Spot gold last traded at $4,166.60 an ounce, down 0.1% on the day.
Despite last month’s improvement, the housing market remains fairly fragile, as existing-home sales are down 2.2% compared to last year.
“Despite the small monthly gain on a seasonally adjusted basis, August and September marked the two slowest months for home sales this year,” said NAR Chief Economist Lawrence Yun. “Further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home.”
The U.S. housing market has struggled through the summer as the Federal Reserve established a new tightening bias to deal with persistently elevated inflationary pressures. At the same time, low housing inventory has kept prices elevated, pricing many potential homebuyers out of the market.
Although the housing market continues to face significant headwinds, Yun noted that conditions are slowly starting to improve.
“Higher inventory and lengthening days on market give buyers improved negotiating power. Home sellers need to be realistic about local market conditions, which could require price discounts and other incentives to attract buyers,” Yun said.
The report noted that the median existing-home price for all housing types was $417,500, up 1.3% from last year. This marks the 39th consecutive month of year-over-year price gains.
The report also noted that the supply of homes is starting to improve. Total housing inventory reached 1.60 million units last month, up 1.9% from August, representing a 4.8-month supply.
