Gold Fails to Rally on Disappointing US Housing Data
The U.S. housing market has been affected by rising interest rates, which have driven mortgage rates higher and impacted home buying activity. According to the National Association of Realtors (NAR), total existing-home sales fell 2% in August to a seasonally adjusted annual rate of 3.96 million.
This decline was in line with economists' expectations, as NAR Chief Economist Lawrence Yun noted that 'mortgage rates and home sales move in opposite directions.' He also pointed out that despite higher interest rates, home prices are rising, and existing-home sales are up 1.6% year-to-date through the first eight months of the year.
The gold market has been unable to attract a significant bid in reaction to this housing market data, with spot gold trading at $4,365.50 an ounce, down 0.85% on the day. Yun attributed the increase in homebuying demand to rising wages and job creation, which grew 3.1% in August.