Gold Price Analysis for January 19, 2018
Gold prices consolidated but made a lower low holding near support at the 10-day moving average at 1,326. A weaker dollar following soft U.S. housing data weighed on the dollar and buoyed gold prices. Resistance on the yellow metal is seen near the September highs at 1,352. Positive momentum has declined and the MACD is poised to generate a crossover sell signal. The occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
Housing Starts Dropped
U.S. housing starts dropped 8.2% to 1.192 million in December following the 3.0% November increase to 1.299 million. Single family sales sunk 11.8% to 0.836 million after the 6.9% prior gain to 0.948 million. Multifamily starts increased 1.4% to 0.356 million after tumbling 6.1% to 0.351 million. Building permits dipped 0.1% to 1.302 million following a revised 1.0% decline to 1.303 million. Completions rebounded 2.2% to 1.177 million after a 2.7% November drop to 1.152 million.
This article was originally posted on FX Empire
