Spot gold trades below $4,400/oz after U.S. housing starts fall 12.4%, building permits rise 5% in July

Gold prices slipped below $4,400 per ounce this morning, trading near session lows, following a mixed performance from the U.S. housing market in July. The Commerce Department reported that housing starts decreased by 12.4% to an annual rate of 1.239 million units, falling short of expectations. Economists had anticipated a 1.350 million-unit decline.

June's housing starts were revised downward to 1.415 million units from the previously reported 1.427 million. On the positive side, building permits for future construction increased by 5.0% to 1.443 million units in July, surpassing the consensus forecast of 1.370 million. June's figure remained unchanged at 1.374 million. Gold prices were hovering just under $4,400 per ounce just before the 8:30 a.m. ET release of the housing data, currently trading at $4,394.24 per ounce, marking a 0.51% decline for the day.

The U.S. housing sector plays a crucial role in the nation's Gross Domestic Product (GDP) and has been a significant drag on the economy due to persistent high prices and higher mortgage rates resulting from the Federal Reserve's aggressive tightening cycle, which has deterred many potential new home buyers.