Gold is resurging and has moved within a hair’s breadth of £1,309 ($1,800) thanks to disappointing data from the USA. The precious metal is quickly gaining momentum and turning lower than expected pending home sales into fuel to the upside.
Economists had expected that the Pending Home Sales Index would continue to show an increase after May’s figures were revised up to 8.3%. However, June’s figures actually confirmed a 1.9% decrease, as per data published yesterday (Thursday) by the National Association of Realtors (NAR). This data is notable as the index is widely considered to be a bellwether indicating the overall health of the national real estate market.
Chief economist of the NAR, Lawrence Yun said, “Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat. The moderate slowdown in sales is largely due to the huge spike in home prices. The Midwest region offers the most affordable costs for a home and hence that region has seen better sales activity compared to other areas in recent months.”
It is unlikely that property prices will fall substantially ahead of the next index being published at the end of August, meaning that this could continue to give gold momentum as it eyes record prices once again.
With gold now firmly demonstrating its ability to capitalise on favourable market factors and turn them into forward momentum, buy now before prices rise further.