US homebuilding activity advanced more than expected in the last month of 2016, official figures revealed on Thursday. The Commerce Department reported housing starts rose 11.3% to a seasonally adjusted annual pace of 1.23 million in December, following the previous month's upwardly revised 1.10 million units and surpassing analysts' expectations for a 1.19 million-unit rate. The December increase suggested the housing market boosted economic growth in the Q4. Meanwhile, building permits came in at a seasonally adjusted annual pace of 1.21 million units in the same month, unchanged from November's upwardly revised reading, slightly missing economists' projections of a 1.22 million-unit rate.
Separately, the Philadelphia Federal Reserve said its Manufacturing Index jumped to 23.6 points in January, the highest level in more than two years, driven by a rise in new orders, which climbed to 26.0 from 14.90. Analysts anticipated a sharp fall to 16.2 points in January from the prior month's 21.5. Data also showed the Employment Index surged to 12.8 from 3.6, while the Business Outlook Index for the next six months hit its highest level since August 2014 of 56.6 points. Other data released on Thursday showed initial jobless claims fell 15,000 to 234,000 last week, the lowest level in more than 43 years.
Upcoming fundamental events: Unemployment and housing
Data, which might affect the strength of the US Dollar and subsequently the price of the yellow metal is set to be released in the US at two different times. At 13:30 GMT US Unemployment Claims are set to be published. Afterwards, at 15:00 GMT the US New Home Sales data will be released. Traders should look more at the Unemployment Claims, rather the housing data.
Gold fluctuates near support level
Daily chart: The yellow metal traded near the weekly S1, which is located at 1,197.37. As forecasted, the bullion fell to the level during Wednesday's trading session. However, it also managed to pass it and touch the 1,193.44 mark during the session. On Thursday morning it is clear that the metal is most likely to continue its fall up to the 1,191.40 level, where the 20-day SMA is located at. If that support level is passed, the bullion might fall as low as the 1,185 mark, where a cluster of support begins. However, it is also possible that the metal rebounds and heads higher. Due to that traders are advised to observe and wait for the start of the move.SWFX sentiment unchanged
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being around 1,250 in April
Traders who were asked regarding their longer-term views on gold between December 26 and January 26 expect, on average, to see the metal near 1,250 in early April. Generally, 47% of participants believe the price will be above 1,250 in ninety days. Alongside, 24% (+3%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.