Gold price hits new daily lows as US pending home sales beat expectations in July

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(Kitco News) Gold fell to new daily lows after the U.S. fell short of expectations in July in handling home sales, showing more consumers are committed to buying a home.

Upcoming home sales were up 5.9% in June, the National Association of Realtors (NAR) said on Thursday. Consensus predictions called for a 3% increase.

The waiting index for home sales came to 122.1 in July, from the June reading of 115.30.

Also, pending home sales was up 15.5% from a year ago, despite the COVID-19 pandemic uncertainty.

“We are witnessing a true V-shaped traffic recovery as homebuyers continue their strong return to the home market,” said NAR chief economist Lawrence Yun. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new ads.”

Refreshing demand is driving the housing market after prospective buyers missed most of the spring of the buying season due to lockdowns, Yun noted.

“That expected rebound would bring the full-year level of existing home sales to 5.4 million, a gain of 1.1% compared to 2019,” the report said.

Economists pay close attention to the declining house numbers, as the index is seen as a progressive barometer for the housing market. A backlog of a month or two usually exists between a contract and a completed sale.

Gold prices hit daily gaps after the publication of the report. December Comex gold futures were last traded at $ 1,926.30, down 1.34% on the day.