Spot gold back above $4,630/oz after U.S. new home sales post shock -17.9% drop in January

New home sales declined 17.6% during the first month of 2026, much worse than the expected -0.9% decrease, following a revised -1.7% drop in December, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced.

New home sales came in at a seasonally adjusted annualized rate of 587,000 in January. The numbers were significantly worse than forecasts, as market consensus calls expected sales of 720,000 units. December’s sales were also revised down to 712,000 from 745,000 units.

On an annual basis, new home sales were down 11.3% from the January 2025 rate of 662,000.

Looking at home prices, the median sales price for new homes last month was $400,500, and the average sales price was $499,500. As of the end of January, the inventory of houses for sale was 476,000, representing a 9.7-month supply at the current sales rate.

Economists continue to pay close attention to the U.S. housing market as it is a major contributor to economic activity. The housing sector has struggled after the Federal Reserve aggressively raised interest rates at the fastest pace in 40 years.

Spot gold continued to rise off its earlier session low immediately after the 10 am EDT release, and last traded at $4,634.20 per ounce, down 3.84% on the day.