Key Highlights

  • Gold price remains in a major uptrend and is currently well above the $1280 support against the US Dollar.
  • There is a key rising channel forming with support at $1282 on the 4-hours chart of XAU/USD.
  • The US New Home Sales in Oct 2017 increased 6.2% (MoM), which was opposite to the -6.3% forecast.
  • Today, the US Housing Price Index for Sep 2017 will be released, which is forecasted to increase by 0.6% (MoM).

Gold Price Technical Analysis

Gold price remains in an uptrend above the $1280 support area against the US Dollar. The price is currently approaching a major resistance zone near $1300-1302.

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Looking at the 4-hours chart of XAU/USD, there is a key rising channel forming with support at $1282. The channel support at $1280-1282 is close to the 100 simple moving average (red, 4-hour). Therefore, the $1280-1282 support region can be considered as a major buy zone in the near term.

Only a daily close below $1280 would negate the current bullish bias. On the upside, the last swing high at $1296.93 is a short term resistance. Above the mentioned $1296.93, the price might test the next major resistance around the 1.236 Fib extension of the last drop from the $1296.93 high to $1274.61 low at $1302.20.

On the downside, an initial support is at $1288, followed by $1285 and then the most important at $1280-1282.

US New Home Sales

Recently in the US, the New Home Sales report for Oct 2017 was released by the US Census Bureau. The forecast was slated for a decline of 6.3% in sales in Oct 2017 compared with the previous month.

The actual result was on encouraging, as the New Home Sales increased 6.2% at a seasonally adjusted annual rate of 685,000. However, the last increase was revised down from 18.9% to 14.2%.

The report added:

The median sales price of new houses sold in October 2017 was $312,800. The average sales price was $400,200. The seasonally-adjusted estimate of new houses for sale at the end of October was 282,000. This represents a supply of 4.9 months at the current sales rate.

Gold price declined after the release, but remains well supported above the $1290 and $1282 levels.

Economic Releases to Watch Today

Germany’s GfK Consumer Confidence for Dec 2017 – Forecast 10.8, versus 10.7 previous.

Euro Zone Private loans (YoY) Oct 2017 – Forecast +2.8%, versus +2.7% previous.

US House Price Index for Sep 2017 (MoM) – Forecast +0.6%, versus +0.7% previous.

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