Housing starts rose by 7% in September to a seasonally adjusted annual rate of 1.358 million units, the Commerce Department said on Wednesday. The data came in slightly weaker than expected as economists looked for an increase to 1.38 million units. At the same time, August's data was revised lower to a rate of 1.269 million units from the previously reported 1.283 million units.The report said that building permits for future homebuilding declined 4.4% to a rate of 1.
The gold market is seeing little reaction to the housing data. Spot gold last traded at $1,948.25 an ounce, up 1.31% on the day and not far from the session high of $1,950.19. The U.S. housing sector significantly contributes to the nation's Gross Domestic Product, and it remains a significantly weak pillar of the economy as persistently higher prices and elevated mortgage rates due to the Federal Reserve's aggressive tightening cycle have pushed many new home buyers out of the marketplace.