(Kitco News) – The gold market remains under pressure but is seeing little movement following stronger than expected U.S. new home sales numbers.
New home sales increased 11.9% to a seasonally adjusted annual rate of 811,000 units last month, the Commerce Department said on Thursday. The sales data came in much stronger than expected as consensus forecasts expected a sales rate of 759,000 homes.
The report also noted that sales are down 14% compared to December 2020.
The gold market is not seeing much reaction to the latest housing data. Spot gold futures last traded at $1,836.98 an ounce, down 0.60% on the day.
According to some market analysts, gold is seeing little reaction to the latest economic data as traders prepare for the Federal Reserve’s latest monetary policy decision, which comes out in the afternoon. The U.S. central bank is expected to lay the groundwork for a rate hike in March.
Economists are closely watching the U.S. housing market. This sector could start to cool as rising interest rates will push mortgages higher.
Looking at some of the components of the latest housing report, the median sales price of new houses sold in December 2021 was $377,700. Meanwhile, the average sales price was $457,300.
Looking at inventory levels, the report said that the supply of new homes sale as of the end of December totaled 403,000 homes, representing a 6-months supply.
