Gold Holds Near Session Highs Amid Fragile US Housing Data

Gold prices remain close to daily peaks, trading solidly above $4300 an ounce. This comes as ongoing fragility in the US housing sector could spur further safe-haven buying.

The Pending Home Sales Index rose 0.3% in August, beating forecasts for a 0.2% drop. July data were revised to a 2.6% decline, with the yearly figure down 4.7%. The Federal Reserve hiked rates by 25 basis points, and Chair Kevin Warsh signaled more work ahead to hit the 2% inflation goal.

NAR Chief Economist Dr. Lawrence Yun said buyers are signing contracts despite higher mortgage rates, yet the market stays sluggish as rates offset job and income gains. Pending sales sit about 30% below pre-pandemic levels. Spot gold last traded at $4374.60, up 2.7% on the day.