(Kitco News) - Gold prices are coming off session lows near $4,500 per ounce this morning after the latest data showed the U.S. housing market performing better than expected last month.
Housing starts fell 2.8% in April to a seasonally adjusted annual rate of 1.465 million units, the Commerce Department announced on Thursday. The data was better than expected as economists looked for a decrease to 1.420 million units. March’s number was unrevised at 1.502 million units.
The report said that building permits for future homebuilding rose 5.8% to a rate of 1.442 million in April, which was better than the consensus expectation for 1.380 million permits, and March's figure was unrevised at 1.363 million.
Gold prices were testing support near $4,503 per ounce just before the 8:30 am ET housing data. Spot gold last traded at $4,513.13 per ounce for a loss of 0.67% on the daily chart.
The U.S. housing sector contributes significantly to the nation's Gross Domestic Product, and it has been a significant drag on the economy as persistent higher prices and elevated mortgage rates resulting from the Federal Reserve's aggressive tightening cycle have pushed many new home buyers out of the market.
