Gold Spikes Up Sharply Despite Robust U.S. Building Permits and Housing Starts Result, A sustained Close above $1,827 requires for the upside Rally; Jan 19, 2022

A Short Term Gold Outlook

Today U.S. released Building Permits and Housing Starts data at 1330 GMT/1900 IST with positve numbers and immediately after it, gold spikes up sharply and touched $1,825 mark.

Key Headlines to keep in mind:

  • Boris Johnson’s politial journey is about to an end. Sources said allies of Liz Truss and Rishi Sunak were leading the charge. If 54 of the 360 Tory MPs send no-confidence letters to the 1922 Committee of backbench MPs, it will trigger a formal leadership contest.
  • Benchmark German debt yields turned positive for the first time since before the pandemic as markets braced for the removal of Central Bank support.
  • Texas election officials have rejected hundreds of mail-in ballot applications, abiding by a new Republican-backed law just weeks before a March 1 primary kicks off this year’s U.S. election cycle.
  • China is drafting nationwide rules to make it easier for property developers to access funds from sales still held in escrow accounts in its latest move to ease a severe cash crunch in the sector – Reuters.

Technical View:

XAU/USD (Gold):

  • The Gold rose sharply despite higher than expected Building Permits and Housing Start Data.
  • Today pair made intraday high at $1,825 and low at $1,810 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,827 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,810 will check further supports.
$1,809 $1,827
$1,804 $1,832
$1,799 $1,837
$1,794 $1,842
$1,789 $1,849

Take a look and do trade wisely!
Good Luck