Gold dips below $4,400 as U.S. housing starts stumble

The Commerce Department reported that housing starts plummeted to a seasonally adjusted annual rate of 1.239 million units, falling short of the 1.350 million units expected by economists. This decline, coupled with a downward revision of June's figures to 1.415 million, underscores the volatility currently gripping the residential construction market. Conversely, building permits for future projects signaled potential resilience, climbing 5.0% to 1.443 million, a figure that comfortably surpassed the consensus estimate of 1.370 million.

Gold had been trending near session lows prior to the 8:30 am ET release, ultimately settling into a 0.51% daily decline. The housing sector remains a critical component of the U.S. Gross Domestic Product, yet it continues to struggle under the weight of persistent inflation and elevated mortgage rates. These financial pressures, a direct consequence of the Federal Reserve’s aggressive tightening cycle, have effectively sidelined a significant portion of potential home buyers.