Gold prices holding above $1,950 as U.S. housing starts drop 11.3% in August

(Kitco News) - Technical momentum is supporting gold prices near a two-week high above $1950 an ounce as the precious metal sees little reaction to significantly disappointing housing construction data, highlighting ongoing weakness in the U.S. housing sector.

Housing starts dropped sharply by 11.3% to a seasonally adjusted annual rate of 1.283 million units last month, the Commerce Department said on Tuesday. The data came in weaker than expected as economists looked for a drop to 1.44 million units. At the same time, Julys data was revised lower to a rate of 1.447 million units from the previously reported 1.45 million units.