US Building Permits Report is to be published today at 12:30 GMT time.
Gold inched lower on Tuesday, decreasing the price of yellow metal to less than $1300.00 an ounce ahead of the US building permit news. The technical bias remains bullish because of a higher high in the recent upside move.
Analysis of Gold Chart
As of this writing, the precious metal is being traded near $1282 an ounce. A support may be noted around $1277, the 38.2% fib level ahead of $1274, the pink trendline support and then $1250, a key horizontal support as well as psychological number.
On the upside, a hurdle can be noted near $1290, the trendline resistance area as demonstrated with black color in the given above chart. A break and hourly closing above the black trendline shall trigger renewed buying interest, validating a rally towards the $1321 resistance area. The technical bias shall remain bullish as long as the $1250 support area is intact.
How Gold Reacted on Past Building Permit News Releases?
Gold inched higher by almost $2 after the release of building permit report on March 16th, 2017. The actual outcome was 1.213 as compared to the forecast of 1.260, as per the March building permit report.
The yellow metal however fell by around $5 after the release of February’s building permit report. The actual outcome was 1.3 as compared to the forecast of 1.2 points.
How to Trade today’s Building Permit News
- Buying the Gold call options can be a good strategy if the US building permit data comes worse than the average projections of economists.
- Alternatively, buying the gold put options may be a good strategy if the US building permit data remains above the average forecast.
What Assets to Trade?
In addition to Gold, trading EUR/USD, GBP/USD, USD/CHF, NZD/USD and AUD/USD can also be a good strategy as the aforementioned pairs are highly reactive to the US building permit report.
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