The gold price is currently testing a major technical resistance level near US$5,200 per ounce, as strong bullish momentum continues to support the precious metals market. Despite new economic data showing modest improvement in the U.S. housing sector, investors remain focused on gold’s safe-haven appeal and long-term wealth protection.
Spot gold recently traded around US$5,193 per ounce, rising roughly 1% on the day, as market momentum continues to favour precious metals.
U.S. Housing Market Shows Early Signs of Stabilising
According to the National Association of Realtors, total existing home sales including single-family homes, townhouses, condominiums and co-ops rose 1.7% in February to a seasonally adjusted annual rate of 4.09 million units.
This was higher than economists’ expectations of around 3.89 million, indicating that consumer demand for housing may be slowly recovering.
However, the housing market is still facing challenges. Existing home sales remain 1.4% lower than the same period last year, highlighting the lingering effects of higher interest rates and affordability pressures.
Chief Economist Lawrence Yun noted that affordability conditions are beginning to improve.
“Housing affordability is improving, and consumers are responding,” Yun said, while adding that the market still has a long way to go to return to pre-pandemic levels of activity.
Interest Rate Expectations Continue to Support Gold
The U.S. housing sector has been under pressure for several years as the Federal Reserve maintained relatively high interest rates. However, sentiment has begun to improve after the central bank cut rates three times during the second half of 2025.
Markets are now expecting further easing later in 2026, potentially beginning around mid-year. Lower interest rates historically support gold prices because they reduce the opportunity cost of holding non-yielding assets such as physical bullion.
Housing Supply Rising, Price Growth Slowing
Inventory levels in the housing market are gradually improving, which may help stabilise property prices.
By the end of February, there were 1.29 million homes available for sale, representing a 3.8-month supply at the current sales pace. This reflects a 2.4% increase from January and a 4.9% rise compared with last year.
Meanwhile, the median existing-home price across all housing types reached $398,000, rising only 0.3% year-on-year, suggesting that price growth is slowing.
Why Investors Continue Turning to Gold
While the housing market shows signs of gradual stabilisation, the gold market remains focused on broader economic uncertainty, inflation risks and geopolitical tensions.
For many investors, the key takeaway is clear: physical gold continues to act as a reliable store of value during uncertain economic cycles.
At FirstGold, many investors are adopting a cost-averaging strategy, steadily accumulating physical gold and silver over time rather than attempting to time short-term market movements. This disciplined approach allows buyers to build long-term wealth while reducing exposure to market volatility.
As gold continues to test the $5,200 resistance level, analysts believe a decisive breakout could signal the next major leg higher for the precious metals market.
For investors focused on security, stability and purchasing power, accumulating physical gold bullion remains one of the most trusted strategies in today’s uncertain financial environment.
