Gold Prices Remain Firm Following 2.6% Drop In Pending Home Sales

Gold Prices Remain Firm Following 2.6% Drop In Pending Home Sales

(Kitco News) – It has not been a great week for the U.S. housing sector however gold is seeing little profit from disappointing knowledge, holding on to modest features.

The newest housing knowledge reveals that fewer U.S. shoppers began the method of shopping for a house, the National Association of Realtors (NAR) stated in its newest report Thursday.

The association’s Pending Home Sales Index declined 2.9% in November to a studying of 102.1, in comparison with October’s enhance of zero.5%. The report was considerably weaker than anticipated with economists forecasting a zero.eight% enhance.

This is the 10th consecutive decline within the index.

Despite the disappointing housing gross sales numbers, gold noticed little preliminary response. February gold futures final traded at $1,232 an oz., up zero.18% on the day.

“The recent rise in mortgage rates have reduced the pool of eligible homebuyers,” stated Lawrence Yun, NAR chief economist.

Pending dwelling gross sales is the third disappointing housing report launched prior to now two weeks. Last week the NAR stated that current dwelling gross sales las month have been comparatively flat.

Wednesday, the Commerce Department dropped eight.9% final month, dropping to the bottom stage since March 2016.

In the present setting, Yun stated that the Federal Reserve ought to look to be much less aggressive in tightening rates of interest.

“The inflationary strain is all however disappearing. Given that situation, there’s much less of a must aggressively increase rates of interest. Looking on the broader economic system and retaining in thoughts that the housing sector is a superb contributor to the economic system, it could be clever for the Federal Reserve to sluggish the elevating of charges to see how inflation develops,” he stated.

Disclaimer: The views expressed on this article are these of the writer and should not replicate these of Kitco Metals Inc. The writer has made each effort to make sure accuracy of knowledge supplied; nevertheless, neither Kitco Metals Inc. nor the writer can assure such accuracy. This article is strictly for informational functions solely. It will not be a solicitation to make any change in commodities, securities or different monetary devices. Kitco Metals Inc. and the writer of this text don’t settle for culpability for losses and/ or damages arising from using this publication.

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