The latest U.S. housing market data has disappointed economists, with poorer than expected numbers helping to solidify the gold bulls’ position above £1,555 ($1,925).
Figures released by the Commerce Department yesterday (Tuesday) revealed a sharp dip in construction data, with an 11.3% decline for August and a newly revised figure to the downside for July. Analysts had expected 1.45 million new units for August, so the actual figure of just 1.283 fell far short.
The number of new building permits issued was also down by 2.7%, which will inevitably lead to further declines in new build figures in future months.
This data is significant as it shows the construction and housing sector continues to struggle in the wake of interest rate increases. Those rises have made new mortgages less affordable and put new home purchases further out of reach of many Americans. Without a robust housing sector, the overall GDP suffers, adding to the nation’s debt problems.
While disappointing for economists, this data has proven a boon for gold and has helped the bulls to further solidify their position above the £1,555 ($1,925) mark. This could become base camp for a new run to all-time highs. Don’t delay. Buy now.
