Gold Rises 2.34% to Record $4,363.56 on Weak US Housing Data
Gold prices climbed to record levels as US housing starts and permits missed market expectations, signaling economic weakness.
Spot gold traded at $4,363.56 per ounce. This represented a 2.34% increase on the daily chart. The metal traded near session highs ahead of key economic releases.
US housing starts fell 2.6% in the latest report. The seasonally adjusted annual rate stood at 1.275 million units. This figure was lower than the consensus estimate of 1.310 million units.
Housing permits show further slowdown
Building permits declined 2.7% to a rate of 1.394 million. Analysts had projected 1.410 million permits for the period. July’s permit data remained unrevised at 1.433 million units.
The Commerce Department released these figures on Thursday. The data indicated a weaker-than-expected performance in the residential sector. Previous month figures were also revised downward.
Economic pressure supports safe-haven demand
The housing sector contributes significantly to US Gross Domestic Product. High prices and elevated mortgage rates have reduced buyer activity. These factors stem from the Federal Reserve’s tightening cycle.
Persistent financial pressure has pushed many potential buyers out of the market. This drag on the economy increased demand for gold. GN auto markets/commodities: gold prices tracked this shift in investor sentiment.
