(Kitco News) – The gold market is finding some bullish support following disappointing economic growth in the first quarter, and the precious metal could attract further bids after weaker-than-expected U.S. new home sales data.
New home sales fell 6.2% in April to a seasonally adjusted annual rate of 622,000, down from March’s sales rate of 663,000, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced Thursday.
The decline was significantly larger than expected, as economists had forecast a relatively stable housing market with a sales rate of 661,000.
On an annual basis, new home sales are down 11.3%.
The gold market is not seeing much reaction to the disappointing housing data. Spot gold last traded at $4,459.90 an ounce, roughly unchanged on the day.
The precious metal had already posted significant gains ahead of the North American market open.
During the European session, gold prices hit a low of $4,366 an ounce, falling below their 200-day moving average.
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