The Commerce Department reported figures significantly lower than the 1.43 million units forecast by economists. This downturn is compounded by a downward revision of April’s data to 1.39 million units, leaving total construction activity 8.9% below levels recorded in May of the previous year. Building permits, a key indicator for future activity, also slipped 0.7% to 1.413 million, suggesting that a near-term rebound in the housing sector remains unlikely.
Gold Prices Climb as US Housing Construction Stumbles
A sharp 15.4% drop in U.S. housing starts during May has failed to rattle the gold market, which continues to trade near session highs. With construction activity falling to a seasonally adjusted annual rate of 1.18 million units, investors are increasingly pivoting toward precious metals as a hedge against economic uncertainty.
Despite the lackluster performance of the housing market, gold remains resilient. Spot gold prices rose nearly 1% on Tuesday, trading at $4,349.40 an ounce. As inflationary pressures show signs of easing, the metal continues to attract a steady bid, benefiting from its reputation as a safe-haven asset while the broader U.S. economy grapples with cooling industrial activity.
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