Gold Stands Firm Above $4,300 as US Housing Market Remains Fragile

The gold market remains firm above $4,300 an ounce as investors seek safe-haven assets amid ongoing weakness in the US housing sector. The latest report from the National Association of Realtors (NAR) shows that US Pending Home Sales rose 0.3% in August, beating consensus estimates.

The data also revised July's contract numbers to show a decline of 2.6%, compared to an initial estimate of 2.3%. For the year, the Pending Home Sales Index fell 4.7%. The Federal Reserve raised interest rates by 25 basis points on Wednesday and indicated that it still has work to do to bring inflation down to its 2% target.

The gold market is not seeing a significant reaction to the mixed home sales data, but ongoing weakness in the housing market could continue to weigh on economic activity. Spot gold last traded at $4,374.60 an ounce, up 2.7% on the day.