The recently released data on Building Permits and Housing Starts in the United States indicated a notable increase, which resulted in a significant decline in Gold prices. The Building Permits came in at a decrease of only -0.7%, slightly better than the -0.9% forecast provided by Trading Central. Meanwhile, Housing Starts surged by an impressive 15.8%, well above the expected 2%.
The decline in Gold prices was pronounced following the release of US housing data at 20:30 WIB, which exceeded projections. Specifically, Building Permits showed a slight decrease of -0.7%, outperforming the anticipated -0.9% as per Trading Central estimates.
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Conversely, the substantial spike in Housing Starts at 15.8% over expectations highlights the resilience of the US housing sector, even amid rising interest rates. This robust housing data positively impacted the US dollar, which in turn pressured Gold prices downwards. As a traditional safe-haven asset, Gold often sees a decrease in value when the economy appears stable, as investors tend to favor higher-yielding riskier assets.
Additionally, the significant escalation in Housing Starts signals optimism regarding the durability of the US real estate market, bolstering market confidence in overall economic stability.
Following the data release, Gold prices fell to $2,705. In addition, primary currency pairs saw declines, with GBPUSD climbing sharply to 1.2179 and EURUSD moving up to 1.0285.
