Gold Exhibits Range Bound Movement Ahead of U.S. Session, U.S. Housing Data May Grab $8+ Volatility in Gold; March 17, 2021
U.S. Housing Starts & Building Permits Data
Today U.S. has scheduled to release key economic data at 1230 GMT/1800 IST. Building permits are an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building. While 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:
XAU/USD (Gold): Gold moves in stiff boundaries ahead of most watchful event of the week and that is U.S. FOMC Interest Rate Decision. Before that, U.S. will release Building permits and housing starts data. The pair made intraday high at $1,737 and low at $1,729 mark. Here a day chart with triple EMA is bearish for the long run while H1 chart signals the slightly bullish trend for the short run. A sustained close above $1,740 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,728 will drag the parity down back below $1,720 mark.
Key Resistances: $1,740, $1,748, $1,754, $1,762, $1,767
Key Supports: $1,728, $1,722, $1,715, $1,708, $1,702, $1.691
Take a look and do trade wisely!