(Kitco News) – Gold costs are holding above $1,500 an oz however seeing little response to extra disappointing U.S. housing knowledge as fewer customers than anticipated launched into the method of shopping for a brand new residence, in keeping with the newest knowledge from the Nationwide Affiliation of Realtors (NAR).
Monday, the affiliation stated that its pending residence gross sales index rose 1.2% in November to a studying of 108.5, up from October’s revised 1.3% decline. Nonetheless, the improve was lower than anticipated as consensus forecasts confirmed economist forecasts seemed for a 1.5% improve.
Caught within the vacation buying and selling season, the gold market has seen little response to U.S. financial knowledge. Nonetheless, the dear metallic continues to be holding above crucial psychological degree of $1,500 an oz. February gold futures final traded at $1,518.40 an ounce, unchanged on the day.
Though the headline improve was lower than anticipated, Lawrence Yun, NAR’s chief economist, stated that housing market stays on strong footing. The NAR famous that contract signing is up 7.4% in comparison with November 2018.
“Regardless of the inadequate degree of stock, pending residence contracts nonetheless elevated in November,” stated he stated, noting that housing stock has been in decline for six straight months courting again to June 2019. “The favorable situations are anticipated all through 2020 as effectively, however provide is not but assembly the wholesome demand.”
Economists intently watch the pending residence gross sales numbers as a result of the index is seen as a barometer for the housing market. A lag of a month or two often exists between a contract and a accomplished sale.
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