Grab the $10 Volatility in Gold During U.S. New Home Sales Data; Oct 26, 2020

U.S. New Home Sales

U.S. will publish new home sales data around 1400 GMT/1930 IST. It’s a leading indicator of economic health because the sale of a new home triggers a wide-reaching ripple effect. For example, furniture and appliances are purchased for the home, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction. Important to note here that since last 5 times, U.S. has released this data with positive numbers only. If actual reading comes higher than forecasted, it will be good for U.S. dollar.

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

Sept 24: Positive new home sales data along with Fed Chair Powell’s Testimony

Aug 25

Technical View:

XAU/USD (Gold): Gold reverses previous loss of early Asian hours and turns slightly positive ahead of U.S. session. Today pair made intraday high at $1,905 and low at $1,891 mark. A sustained close above $1,908 requires for the upside rally. On the other side, consistent close below $1,902 will check key supports as well. Key support levels are seen around $1,891, $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 $1,914, $1,925, $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.

Take a look and do trade wisely!
Good Luck