What to expect from Gold during U.S. Session?
Gold moves in rigid boundaries ahead of U.S. Session and moving in between $1,875 to $1,865 mark. Today U.S. has just released key Housing data with flat to negative numbers. Housing data is a leading indicator of economic health because building construction produces a wide-reaching ripple effect. For example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various construction services are purchased by the builder. While building permits is an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
Just after the data released, Gold breaks the key boundaries and touches $1,875 mark. Later in a day U.S. FOMC member Bostic speech is due to release at 1630 IST/2200 IST. Any comments regarding U.S.’s bond tapering program or economic forecast may bring the market volatility.
XAU/USD (GOLD): The pair rises immediately after U.S.’s housing data but faces key hurdle to break at $1,875 mark and currently pair slips below $1,870 mark. The pair made intraday high at $1,875 and low at $1,865 mark. A day chart and H1 chart with triple EMA confirms the uptrend for the time being. A sustained close above $1,872 on H1 chart requires for the upside rally. Alternatively, reversal from here will drag the parity down below $1,860 mark.
Key Resistances: $1,876, $1,882, $1,887, $1,894, $1,899
Key Supports: $1,862, $1,857, $1,852, $1,847, $1,840
Take a look and do trade wisely!