(Kitco News) -The gold market is struggling to attract new bullish momentum even as the U.S. housing market struggles to stabilize and weak construction activity continues to threaten economic growth. However, this lack of reaction from the gold market may be due to other factors at play.
U.S. Housing Market Data
Housing starts rose 5.7% in April to a seasonally adjusted annual rate of 1.36 million units, the Commerce Department said on Thursday. However, the data came in lower than expected, as economists looked for a rate of 1.42 million units. Despite the monthly increase, the report said that housing construction compared to last year is down 0.6%.
Gold Market Performance
The gold market is not seeing much reaction to the latest housing market data as investors take some profits after prices tested resistance just below $2,400 an ounce. June gold futures last traded at $2,387.70 an ounce, down 0.30% on the day.
One reason for the lack of movement in the gold market could be attributed to the ongoing concerns around inflation and the Federal Reserve’s monetary policy. Investors may be awaiting further clarity on these economic indicators before making significant moves in the gold market.
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