Gold Pulls Back from Lows but Overlooks U.S. Housing Sales Slump

Gold prices have edged away from their recent lows yet remain under pressure amid a stabilizing U.S. housing market. Existing-home sales fell 2% to a seasonally adjusted annual rate of 3.96 million units in August, the lowest level since February, according to the National Association of Realtors.

The drop matched economists’ expectations. NAR Chief Economist Lawrence Yun highlighted the impact of rising mortgage rates, saying: “Mortgage rates and home sales move in opposite directions, so it's not surprising to see a mild dip in home buying activity due to high mortgage rates.”

Home prices continue to climb, with sales up 1.6% year-to-date through August. Wage growth of 3.1% in August and 643,000 net new jobs added this year are supporting demand. Spot gold last traded at $4,365.50 an ounce, down 0.85% for the day.