Gold Prices At Session Lows As Pending Home Sales Jump 4.6%

New York (Feb 27)  Gold prices remain under pressure near session lows following data that shows U.S. consumer are jumping back into the housing market.

Wednesday, the National Association of Realtors (NAR) said that its pending home sales rose 4.6% to a reading of 103.2 in January, compared to December’s 2.2% drop. The increase ends a three-month downtrend. Economists were expecting to see an increase of 0.7%

The stronger-than-expected data is having little impact on gold prices as investors continue to focus on comments from Federal Reserve Chair Jerome Powell, who is back on Capitol Hill for his second day of testimony before Congress. April gold futures last traded at $1,324.10 an ounce down 0.34%.

Despite the strong headline data, the NAR noted that pending home sales are still down 2.3% compared to January 2017.

According to some economists, the housing sector has been suffering because of rising interest rates; however, Lawrence Yun, NAR chief economist said that the Fed's change in monetary policy, halting interest rate hikes in January, has helped boost sentiment in the housing sector.

"Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers," he said.

Yun added that positive pending home sales figures in January will likely continue. “Income is rising faster than home prices in many areas and mortgage rates look to remain steady. Furthermore, job creation will help lift home buying.”

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