Gold Under Pressure as US New Home Sales Plummet 10.5%

The gold market continues to face selling pressure due to profit-taking after reaching resistance at $4,700 an ounce. However, analysts believe that gold remains well-supported as a safe-haven asset amid the struggling U.S. housing sector.

New home sales in the U.S. fell by 10.5% in July, with the seasonally adjusted annualized rate coming in at 607,000 units. This was significantly weaker than expected forecasts of 620,000 units, and June's sales were revised up to 678,000.

The gold price last traded at $4,618.80 an ounce, down 0.68% on the day. Despite this decline, analysts see gold as a stable option for investors due to its safe-haven appeal.