(Kitco News) - The gold market continues to struggle to hold critical support at $4,000 an ounce and has been unable to attract a safe-haven bid as the U.S. housing sector remains lackluster, potentially weighing on economic activity through the second half of the year.
In its latest monthly report, the National Association of Realtors (NAR) said that fewer potential buyers than expected are starting the homebuying process.
The U.S. Pending Home Sales Index dropped 5.4% in June, the NAR announced Thursday. The data came in significantly weaker than expected, as economists had forecast a 0.5% decline.
Over the past 12 months, the index is down 0.3%, the report said.
“The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers,” said NAR Chief Economist Dr. Lawrence Yun. “However, job gains can help support housing demand.”
The gold market has been unable to attract buying momentum despite the disappointing housing data. According to analysts, gold remains focused on the prospect of additional interest rate hikes, as the broader economy and U.S. consumers continue to show relative resilience.
Spot gold last traded at $3,992.80 an ounce, down 1.6% on the day.
