New US home beat expectations in January, gold price rises from daily lows

(Kitco News) Gold rose as US new home sales surprised on the upside in January, rising 7.2%. The previous month’s number was also revised higher.

New home sales last month were at a seasonally adjusted rate of 670,000 homes, the U.S. Department of Commerce said Friday. December sales were revised to a rate of 625,000 units.

According to market consensus, sales are expected to fall to 620,000 units in January.

On a year-over-year basis, new home sales fell 19.4% from last year’s estimate of 831,000 units in January.

Looking at home prices, the report said the median sales price for homes sold last month was $427,500, while the median price was $474,400.

At the end of January, the inventory of homes for sale was 439,000, representing 7.9 months of inventory at current sales rates.

Gold rallied slightly from daily lows following the release of the data, with April Comex gold futures last trading at $1,820.10, down 0.37% on the day.

The gold market also consumed the annual core PCE price index, the Federal Reserve’s preferred measure of inflation, which rose 4.7% versus the expected slowdown to 4.3%. For December, the core PCE price index was revised upwards to 4.6%.

Live 24 hours gold chart [Kitco Inc.]

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