Housing Construction Data Shows Growth; Gold Prices Undeterred Due To The Data As They Show Little Change

25-Sep-2019 | Facts and Factors

The prices of Gold have been under constant pressure but did see a little movement after the Department of Commerce’s report shows that the housing starts in the United States has seen a rise of 12.3% to 1.36 million units seasonal adjusted annual rate in the previous month. 

The consensus forecasts which were compiled by a large number of the news organizations had predicted the starts to be about 1.25 million to 1.26 million units. The tally of July saw a revision to 1.215 million units.

In the meantime, the department of commerce has said that the tally of building permits which is considered to be an important indicator of construction activity which will be happening in the future saw a rise of 7.7% in the previous month to 1.42 million at annualized rate. The expectations of economists were to see 1.31 million or thereabouts as the reading.

Gold has held above the critical support at $1,500/ounce as the traders are waiting for the latest monetary policy decision by the Federal Reserve which will be released later in the day. The data though has had little impact on gold. December gold futures which were trading last at $1,511.6/ounce was down by 0.12% on this day.

As per economists, the construction data which is better than expected is good news for housing sector that has struggled for close to a year.

The lower rates of interest are seemingly working as a support to the housing market of the United States. As per economists, the single-family homebuilding is appearing to be more stable than it was during Quarter 2.