The gold market is being bombarded with strong economic data, the latest coming from the U.S. housing sector as consumers bought new homes at the highest pace in more than 14 years.
The Commerce Department said on Friday new home sales rose more than 20% to a seasonally adjusted annual rate of 1.021 million units last month, the highest level since January 2007. New home sales are counted at the signing of a contract, making them a leading housing market indicator.
According to consensus estimates, economists were expecting to see a sales pace of 885,000 homes.
On an annual basis, new home sales are up more than 66% compared to March 2020 levels.
The gold market is struggling to find traction in the face of the positive economic data. June gold futures last traded at $1,777.80 an ounce, down 0.24% on the day.
The housing sector has been a strong pillar of support for the U.S. economy as it continues to recover from the devastating impact of the COVID-19 pandemic.
Looking at housing prices, the report said the median sales price of new houses sold last month was $330,800; meanwhile, the average sales price was $397,800.
Economists have said that home prices continue to be supported by low inventories. The report said that the inventory of new homes for sale as of the end of March totaled 307,000, representing a 3.6-months supply at the current sales rate.