Gold price drops as US existing home sales beat expectations in July

(Kitco News) Gold fell after hitting new daily highs of over $ 1,800 an ounce as US existing home sales rose 2% in July, beating market expectations.

Existing home sales hit a seasonally adjusted, annualized rate of 5.99 million units last month, compared to the annualized rate of 5.87 million units in June, the National Association of Realtors said on Monday. (NAR). Market consensus projections predicted an increase in existing home sales to 5.83 million.

On an annual basis, July’s existing sales increased 1.5%.

The housing situation in the United States is always a question of inventory, said Lawrence Yun, chief economist of NAR.

“We are seeing stocks start to rise, which will reduce the intensity of multiple offers,” Yun said. “Much of the growth in home sales is still happening in high-end markets, while mid-to-lower tier areas aren’t seeing as much growth because there are still too few starter homes available.”

Gold prices edged down after the data was released. The December Comex gold futures were last traded at $ 1,804.10, up 1.13% on the day.

The median price for all types of homes was $ 359,900 in July, up 17.8% from a year ago. This is the 113th consecutive month of year-over-year gains.

Total inventory stood at 1.32 million units, down 12% from last year’s total.

“While we shouldn’t expect home prices to drop over the next few months, it is possible that they will level off as inventories continue to gradually improve,” Yun added. “In the meantime, some potential buyers whose prices are overpriced are increasing the demand for rental housing and thus increasing rental rates.”