Gold prices edged lower as US housing data exceeded expectations.

A new report from the National Association of Realtors (NAR) shows signs of a rebound in the housing market. The pending home sales index rose 1.9% in October, exceeding forecasts of 0.5%. Against a backdrop of continued economic uncertainty, this increase contributes to greater stability for buyers and the financial markets, including gold prices.

Following the release of the report, spot gold prices fluctuated around $4,129.26 per ounce, down 0.11% from the previous session. Despite a somewhat positive housing market, gold prices remained high, reflecting strong investor interest in safe-haven assets amid uncertainties surrounding interest rates and the US economy.

In the October report, pending sales increased in the Northeast, Midwest, and South, but declined in the West, where home prices are already much higher. Year-on-year, the decline was only -0.4%, much lower than the forecast of -2.4%, suggesting the slowdown is occurring. The Midwest and South even recorded year-on-year growth.

Expert Lawrence Yun noted that the Midwest stands out due to its more affordable prices. From November to February, the timeframe for properties on the market is typically longer, giving buyers more bargaining power. He also said that the improved job market in September is a positive sign, boosting people's confidence in their future home-buying prospects.

The NAR's August survey found that only 17% of respondents expected homebuying activity to increase in the next three months, down from September. Expectations for home supply also fell to 16%. These figures indicate the market remains cautious and has not yet truly exploded.

Despite some positive data, the US housing market remains under significant pressure after two difficult years due to high home prices and expensive mortgage rates. In this context, gold remains an attractive investment, especially as investors seek stability amidst changes in the US economy.