Gold Moves In Rigid Boundaries Ahead of U.S. Building Permits & Housing Starts Data, $7+ Volatility Likely; July 20, 2021

U.S. Building Permits & Housing Start Data

Today U.S. will release Building permits and housing starts data at 1230 GMT/1800 IST. Building Permits is 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.

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

June 16:

May 18:

Technical View (Gold/XAUUSD):

  • The gold trades marginally higher on Tuesday and stabilizes above $1,810 mark.
  • The pair made intraday high at $1,819 and low at $1,810 mark.
  • A day chart is down while H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,817 requires for the upside rally.
  • Alternatively, a consistent close below $1,810 on H1 chart will check further supports.
$1,822 $1,809
$1,827 $1,802
$1,832 $1,796
$1,837 $1,791
$1,842 $1,786

Take a look and do trade wisely!
Good Luck