XAUUSD, H1
U.S. January new home sales fell 7.8% to 593k, lower than expected, after tumbling 7.6% to 643k in December (revised from 625k). The back-to-back declines offset the 13.0% surge in November to 696k (revised from 689k) and leave sales at the lowest since August. The housing market has been impacted since the summer by natural disasters and weather, while low inventors have remained a problem for years. Regionally, sales were mixed with declines in the Northeast and South, and gains in the Midwest and West. The months’ supply of homes climbed further to 6.1 months after jumping to 5.5 (revised from 5.7) in December and is the highest July 2014, which was also 6.1). The median sales price declined 4.1% to $323,000 after falling 1.8% to $336,000 (revised from $335,400). Compared to January 2017, the median price is 2.5% y/y higher, though the pace has slowed from 8.9% y/y in November.
So far today US Dollar mounts a modest recovery, which changed a bit following the softer new home sales outcome, leaving EURUSD near session lows at 1.2295 and USDJPY around 106.80. Wall Street remains higher, though off its best levels, while yields dipped lower. Meanwhile, Gold returned back to Friday’s closing levels at $1330.40 after perked up overnight to one-week highs of $1,342.80. The XAUUSD forms a rounding top in the hourly chart, on USD rebound, with neckline at the 20-DAY SMA, at 1330.00. Therefore a break below that level or a closing today below that, could suggests weakness for the commodite. Risk-on conditions seems to have limit gold’s upside potential going forward.
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Andria Pichidi
Market Analyst
HotForex
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