The Commerce Department reported figures significantly lower than the 1.43 million units forecast by economists. This downturn is compounded by a downward revision of April’s data to 1.39 million units, leaving total construction activity 8.9% below levels recorded in May of the previous year. Building permits, a key indicator for future activity, also slipped 0.7% to 1.413 million, suggesting that a near-term rebound in the housing sector remains unlikely.

Despite the lackluster performance of the housing market, gold remains resilient. Spot gold prices rose nearly 1% on Tuesday, trading at $4,349.40 an ounce. As inflationary pressures show signs of easing, the metal continues to attract a steady bid, benefiting from its reputation as a safe-haven asset while the broader U.S. economy grapples with cooling industrial activity.