- Gold price loses ground near $1,978 in early Monday.
- US Housing Starts and Building Permit for October came in better than expected.
- Gold traders will closely watch the FOMC Meeting Minutes on Tuesday.
Gold price (XAU/USD) loses traction during the early Asian trading hours on Monday. The softer US Dollar (USD) and a decline in US Treasury bond yields might lift the precious metal, Gold price currently trades around $1,978, losing 0.14% on the day.
The US housing data for October came in better than expected on Friday. The Housing Starts climbed 1.9% MoM to 1.372M, better than the estimation of 1.35M. Building Permit grew 1.1% to 1.487M, above the market consensus of 1.45M. Many Federal Reserve (Fed) officials pushed back against rate cut estimates for 2024, while money markets show traders have priced in 100 basis points (bps) of easing towards December of the next year.
Boston Federal Reserve (Fed) President Susan Collins voiced optimism on Friday that the central bank might bring down inflation without causing major harm to the labor market by being "patient" with the next interest rate rises. Additionally, Fed President Austan Goolsbee said that inflation is on pace to meet the Fed's target as long as house price pressures decrease.
Meanwhile, the US dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, posts its worst weekly decline since mid-July, hovering around 103.45. That being said, a weaker USD might boost the USD-denominated gold.
Last week, US President Joe Biden and China President Xi Jinping met each other for the first time since November 2022. Although the meeting brought certain concrete outcomes, it is doubtful that US-China ties will improve much in the near future. A renewed tension between the two world’s largest economies might benefit safe-haven assets like gold.
Moving on, gold traders will closely monitor the FOMC Meeting Minutues on Tuesday for further impetus. Later this week, the US Durable Goods Orders will be due on Wednesday. The preliminary US S&P Global Manufacturing PMI for November will be released on Friday. Traders will take cues from the data and find trading opportunities around the gold price.
|Today last price||1978.14|
|Today Daily Change||-2.73|
|Today Daily Change %||-0.14|
|Today daily open||1980.87|
|Previous Daily High||1993.47|
|Previous Daily Low||1978.65|
|Previous Weekly High||1993.47|
|Previous Weekly Low||1931.67|
|Previous Monthly High||2009.49|
|Previous Monthly Low||1810.51|
|Daily Fibonacci 38.2%||1984.31|
|Daily Fibonacci 61.8%||1987.81|
|Daily Pivot Point S1||1975.19|
|Daily Pivot Point S2||1969.51|
|Daily Pivot Point S3||1960.37|
|Daily Pivot Point R1||1990.01|
|Daily Pivot Point R2||1999.15|
|Daily Pivot Point R3||2004.83|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.