The gold market is continuing to stay under pressure and under the crucial psychological levels of $1,800 per ounce even as the United States housing sector cools down in line with anticipations, according to the new data from the NAR (National Association of Realtors).
Wednesday, the NAR reported that existing home sales went down by 2% to a sales number of 5.88 million homes in Aug., which is down from July’s sales rate of 5.99 million properties. However, the fall of in home sales was something that met the expectations of economists.
The report noted that this was the second month of consecutive decreases in home sales. Annually the sales rate is lower by 1.5% when compared to Aug. 2020.
The gold market is not witnessing any bullish movement from the fall in existing property sales. Dec. gold futures last exchanged hands at $1,774.10 per ounce, down 0.23% for the day.
Lawrence Yun, who is NAR’s chief economist, says that sales were lower as housing prices increased last month and inventories kept declining.
“Although there was a lowering in home sells, possible buyers are out there and they are searching, but much more reserved about their financial abilities, and simply waiting for better inventory,” he said.
Looking at the home prices, the NAR stated that the median price for all types of housing in August was $356,700, which is higher by 14.9% from 2020.
Meanwhile the supply of property is continuing to go down. The report stated that the inventory of homes for last month came to around 1.29 million units, which represented a 2.6-month supply.
The pressure on Gold and the uncertainty about real estate is yet another sign of Americans’ uneasiness about the economy. With growing inflation for common goods and services like groceries, gas, and rent, people are becoming reluctant to spend money on larger purchases. More than that, the trend is causing increasing distrust among investors and Washington decision makers as the nation’s currency is further eroded by large scale spending programs.
Author: Blake Ambrose