At 10:00 am EST this morning, the economic overlords released the data for the New Home Sales number for July. The number came in sharply lower than expected, recounting a mere 394,000 new home sales on expectations of 485,000. Immediately upon release, silver and gold rocketed higher with both piercing through key technical overhead resistance.
Silver managed to overcome $23.50 without even a lick of resistance and is now trading around $23.70 as of writing. Myself and others couldn’t have imagined the new home sales would fall so short of expectations, and it is an interesting topic given the recent surge of almost 10% in the 10-year interest rate. On one hand we have heard that a majority of new home sales are being paid in with cash, and on the other hand there is no denying that the recent trend higher in interest rates has dampened the buy side of real-estate inventories.
I will have to revisit the analysis below (which suggested a brief pullback to $22) in light of the new information, especially given the bearish selloff in the dollar index.
As of writing silver is currently up over 3% and gold is up a healthy 1.8%.