The housing market, recognized as an important pillar of American economic growth, has weakened and consumers purchased fewer new homes than expected this month last. However, gold prices have risen and are reaching record highs during the session.

In July, the U.S. Department of Commerce announced on Tuesday 22 that new home sales fell by 12.6% at an annualized, adjusted rate seasonal houses of 511,000 homes. Economists were looking for a rate of sales of around 574,000 homes, according to consensus estimates. Indeed, for analysts, this is the worst sales pace since 2016. New home sales are down nearly 30% for the year.

In addition, the gold market is experiencing new demand for safe haven at a time when fears of recession have reappeared on the market following sales data ; cevantes. Over the day, December gold prices last traded at $1,765.70 an ounce, rose around 1%. Some economists believe that the decline is not a major shock, since the dynamics of the housing sector have slowed for most of 2022, the Federal Reserve has aggressively tightened its monetary policy while the latest data on home sales was more low than expected.