Gold and the US Housing Market Swinging Up

Gold prices are trading near session highs due to positive data indicating a rebound in the U.S. housing market in December. New home sales increased by 8%, meeting expectations and surpassing the previous month's -9% print. The annualized rate for December was 664,000 units, higher than the forecast of 645,000. November's sales were also revised upward. On an annual basis, new home sales were up 4.4% from December 2022. Median and average sales prices for new homes were $413,200 and $437,300, respectively. Economists closely monitor the housing market's performance as it significantly influences economic activity. The housing sector has faced challenges due to aggressive interest rate hikes by the Federal Reserve and a lack of supply, keeping prices elevated. Gold prices rose to $2,025.32 before the release of data and last traded at $2,024.15, up 0.49% on the day.