Gold Rises, Copper Falls as U.S. Home Sales Sag a Third Month
- Investors are seeking haven assets like gold, Streible says
- Zinc, lead and tin slip, aluminum and nickel little changed
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Gold had the first gain in three sessions after new-home sales in the U.S. unexpectedly declined, highlighting economic-growth concerns that helped boost demand for the metal as a store of value. Copper fell.
Home purchases fell for a third straight month amid the weakest pace of demand in the U.S. West since July 2014. The figures add to the case for the Federal Reserve to tighten monetary policy at a restrained pace, boosting the appeal of precious metals, which don’t pay interest. A slowing housing market would dim demand prospects for industrial metals like copper, which relies on construction for about 40 percent of U.S. demand.