- – Gold price traded lower recently and broke the $1295 support against the US Dollar.
- – There was a break below a major bullish trend line with support at $1296 on the hourly chart of gold versus the USD.
- – Recently in the US, NAHB Housing Market Index for Oct 2017 was released by the National Association of Home Builders.
- – The outcome was above the forecast of 64, as there was a rise from 64 to 68.
US NAHB Housing Market Index
Recently in the US, NAHB Housing Market Index for Oct 2017 was released by the National Association of Home Builders. The market was positioned for no change in the index from the last reading of 64.
The actual result was above the forecast of 64, as there was a rise from 64 to 68. It is the highest reading since May 2017 and all three HMI components posted gains in October 2017. Commenting on the same, the NAHB Chairman, Granger MacDonald, stated:
This month’s report shows that home builders are rebounding from the initial shock of the hurricanes. However, builders need to be mindful of long-term repercussions from the storms, such as intensified material price increases and labor shortages.
The overall result was positive and impacted Gold price below the $1300 handle.
Gold Price Technical Analysis
There was a steady rise in Gold price from the $1280 swing low against the US Dollar. The price traded as high as $1305 before facing strong offers. Later, the price started a downside moved and traded below the $1300 support zone.
The decline was important since the price broke the $1298 support and the 100 hourly simple moving average. Moreover, there was a break below a major bullish trend line with support at $1296 on the hourly chart of gold versus the USD.
These are negative signs in the short term since the price is now below $1295. It traded as low as $1281.36 recently and currently correcting higher. At the moment, the price is trading near the 23.6% Fib retracement level of the last decline from the $1305.90 high to $1281.36 low.
On the upside, the broken support near $1295-96 might now act as a strong resistance and a sell zone in the near term.Tags: Gold Price, Gold Price Analysis, Gold Price Chart, Gold Price Forecast, Gold Price Technical Analysis, US Dollar