The National Association of Realtors reported the slight increase in pending home sales on Thursday, a surprise to analysts who had anticipated a 0.2% decline. Despite this minor monthly reprieve, the market remains strained, underscored by a 4.7% drop in index activity over the past year. July figures were also revised downward, showing a 2.6% decline rather than the previously estimated 2.3%.

This cooling in real estate comes as the Federal Reserve maintains a hawkish stance on monetary policy. Following a 25-basis-point rate hike on Wednesday, Federal Reserve Chair Kevin Warsh indicated that further measures are required to pull inflation back to the 2% target. With the housing market effectively stalling under the weight of these borrowing costs, investors are increasingly looking toward gold, which recorded a 2.7% gain on the day.