Gold prices are breaking out following a stronger than expected U.S. Housing price report. Prices sliced through trend line resistance after bouncing off support near the 50-day moving average at 1,274. Target resistance on the yellow metal is seen near the November highs at 1,300. Momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.
U.S. Housing Prices Increased
U.S. October Case Shiller home price index rose 0.2% to 203.84 for the 20-City reading, after increasing 0.38% in September to 203.44 which was revised from 203.5. The 12-month index increased to 6.38 year over year versus the prior 6.16% gain which was revised from 6.19%. The 10-City index rose 0.23% to 217.69 following September’s 0.46% increase to 217.19 which was revised from 217.27. Prices appreciated to a 6.02% year over year from 5.66% year over year previously which was revised from 5.21% year over year.