(Kitco News) - The gold market continues to hold critical support around $4,000 an ounce and could attract further safe-haven interest as the U.S. housing sector continues to struggle.
New home sales fell 0.6% to a seasonally adjusted annualized rate of 676,000 units last month, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced Tuesday.
The numbers were slightly better than expected, as market consensus forecasts called for sales of 651,000 units. However, August’s sales figures were revised lower by 4,000 units.
The report also showed that new home sales have declined 12.5% over the past 12 months.
The gold market is not seeing a significant reaction to slowing momentum in the U.S. housing sector. Spot gold last traded at $4,044.20 an ounce, up 0.70% on the day.
Looking at home prices, the median sales price for new homes last month was $393,700, and the average sales price was $478,700. As of the end of August, the inventory of houses for sale was 483,000, representing a 8.5-month supply at the current sales rate.
According to analysts, elevated home prices continue to take their toll, pricing many potential buyers out of the market. The report said that he median sales price of new houses sold last month was $400,400. Up 3.9% from August but down 3.9% from last year. The average sales price of new houses sold in September was $472,800, roughly unchanged from August and down 6.7% from last year.
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 after the Federal Reserve aggressively raised interest rates at the fastest pace in 40 years.
