Key Points
- Gold price after declining towards $1195 against the US Dollar found support and moved higher.
- There is a bearish trend line on the hourly chart of Gold, waiting on the upside near $1210-1212 to act as a resistance.
- Today in the US, the President Trump Speech is lined up, which may impact prices to a great extent.
- Recently, the Building Permits released by the US Census Bureau, at the Department of Commerce posted a disappointing reading of 1.210M in Dec 2016.
Gold Technical Analysis
We this week saw how Gold price decline from $1216 and traded below the $1200 support area against the US Dollar. However, it found support at $1195 and started trading higher. The price is now back higher, and trading above the 50% Fib retracement level of the last decline from the $1216 high to $1195 low.
Moreover, the price also moved above the $1205 resistance, but likely to face sellers near the 76.4% Fib retracement level of the last decline from the $1216 high to $1195 low.
On the upside, there is also a bearish trend line waiting near $1212 to act as a hurdle for more gains in Gold price.
US Building Permits
Recently, the US Building Permits, which shows the number of permits for new construction projects was released by the US Census Bureau, at the Department of Commerce.
The market was positioned for an increase from the last reading of 1.201M to 1.225M in Dec 2016. However, the result was on the lower side, as it came in at 1.210M. The report mentioned that “Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,210,000. This is 0.2 percent (±1.8%)* below the revised November rate of 1,212,000, but is 0.7 percent (±1.6%)* above the December 2015 estimate of 1,201,000”.
Overall, it looks like Gold price may trade higher towards $1212 or the trend line resistance, but we need to be careful trading around the President Trump Speech.
