Gold Stalls as Housing Slump Fails to Trigger Safe-Haven Demand

The National Association of Realtors reported a contraction significantly sharper than the 0.5% decline predicted by economists. This drop reflects a market stifled by the highest mortgage rates in nearly a year combined with record-high median home prices. NAR Chief Economist Dr. Lawrence Yun noted that these conditions create a particularly difficult environment for first-time buyers, though he suggested potential job gains might eventually offer a floor for housing demand.

Spot gold traded at $3,992.80 an ounce following the release, marking a 1.6% loss for the day. While poor economic indicators typically bolster gold as a safe-haven asset, the current market sentiment remains anchored to the resilience of U.S. consumers and the likelihood of further interest rate hikes. Analysts indicate that until the broader economic narrative shifts, gold likely lacks the momentum needed to reclaim its footing above the $4,000 threshold.