Be Careful as U.S. Building Permits Data Capture around $9 in Gold – Oct 20, 2020

U.S. Building Permits & Housing Starts

U.S. will release housing data around 1230 GMT/1800 IST. It’s an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building. On the other side, housing start 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.

Let’s see how Gold has reacted during the previous data release:

Sept 17

Aug 18

Technical View:

XAU/USD: Gold trades in rigid boundaries ahead of building permits and housing starts data. Today pair made intraday high at $1,908 and low at $1,894 mark. A sustained close above $1,908 requires for the upside rally. On the other side, consistent close below $1,891 will check key supports as well. Key support levels are seen around $1,882, $1,876, $1,864, $1,857, $$1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1908, $1,917, $1,922, $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.

Take a look and do trade wisely!
Good Luck