Gold prices gained traction early in the North American Trading session following a softer than expected U.S. housing starts report that showed a decline
Gold prices gained traction early in the North American Trading session following a softer than expected U.S. housing starts report that showed a decline in multi-family homes started. The news pushed the dollar lower, as yields moved down, but the balance of the day saw golf prices trade on the defensive. U.S. housing starts fell 11.0% to a 1,060k rate compared to the median expectations of 1,160k from 1,191k in September.Permits for October were 1,150k from 1,105k in September.
The next level of target support on gold prices is seen near the January 2010 lows at 1044. Resistance is seen near the 10-day moving average at 1085. Momentum on the yellow metal remains negative with the MACD (moving average convergence divergence) index prints in negative territory with a downward sloping trajectory. The RSI (relative strength index) continues to print near 22, below the oversold trigger level of 30, which could foreshadow a correction.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.