Housing Starts Fall, Giving Cushion To Gold

Resales of already-built houses and condos in the U.S. fell 0.6% in February, seasonally adjusted. The 5.02 million sales figure is the lowest in eight months.

Sales of existing homes have fallen three consecutive months after rising steadily through the fall in response to a federal subsidy for first-time home buyers. The tax credit has been restored and expanded to repeat buyers, but there has been no increase in sales yet.

A real-estate economist expressed fears of a double-dip recession if housing sales don't pick up.

The news added a bit of a boost to gold, seeing as it indicates economic weakeness and possible extension of Fed easing. From $1,097 as of just before the number's release, gold moved up above $1,100. As of 10:13 AM ET, it was at $1,102.70 and sported a miniscule $0.10 gain on the day.