Risk assets move higher in the US trading session as poor housing data continues to pour in.
Bullion.Directory precious metals analysis 29 July, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said “housing has been turning in mixed economic numbers in the last few months.”
Well, unfortunately, housing data has been much weaker than forecasted over the last year, and data in new home sales and pending home sales have been extremely weak – plus weather cannot be blamed this time!
The Conference Board Inc. consumer confidence survey came in at 90.9, beating the 85.5 expectations. This marks the highest reading since 2007, while personal spending declines and personal savings increase.
Traders are heading into risk assets ahead of tomorrow’s FOMC minutes statement. Market participants are expecting the Federal Reserve’s plan to continue on track, but the dovish nature of the Fed could help support gold prices, currently down $1.30 to $1,304.50 per toz.
Support can be found at $1,301.80, while a break below this level could trigger downward pressure.
Gold will likely find secondary support at $1,295.30 and $1,290.20 per toz. Resistance levels to watch are $1,305.90 and $1,308.70.
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