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(Kitco News) – The week was not good for the US housing sector, but the gold gets little benefit from disappointing data, retaining modest gains.
The latest housing data shows that fewer US consumers have begun the process of buying a home, said Thursday the National Association of Realtors (NAR).
The index of home sales pending the association fell 2.9% in November, to stand at 102.1, compared with the 0.5% increase recorded in October. The ratio was significantly lower than expected with economists forecasting a 0.8% increase.
This is the tenth consecutive decline in the index.
Despite disappointing housing sales figures, gold has not experienced any initial reaction. The latest gold futures in February traded at $ 1,232 per ounce, up 0.18% on the day.
"The recent hike in mortgage rates has reduced the pool of eligible homebuyers," said Lawrence Yun, chief economist of NAR.
Pending Home Sales is the third disappointing housing report released in the last two weeks. Last week, the NAR said sales of existing homes were relatively stable in January.
Wednesday, the Commerce Department fell 8.9% last month, falling to the lowest level since March 2016.
In the current environment, Yun said the US Federal Reserve should look less aggressive in reducing interest rates.
"Inflationary pressure is disappearing. In these circumstances, it is less necessary to aggressively increase interest rates. Looking at the economy as a whole and keeping in mind that the housing sector is a major contributor to the economy, it would be wise for the Federal Reserve to slow down rate hikes to see how inflation will develop. " did he declare.
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