Sales of new homes in the Unites States dropped to a 10-month low last month, official figures revealed on Thursday. According to the Commerce Department, home sales fell 10.4% to a seasonally adjusted annual pace of 536,000 units in December, whereas the November reading was revised up to 598,000 from the originally reported 592,000 unit-pace. Market analysts anticipated a slight decrease to 585,000 units during the reported period. The December figure marked the first monthly decline in the last three months. On an annual basis, sales were down 0.4% compare to December 2015. For all of 2016, new home sales grew 12.2% to 563,000 units, the highest level since 2007. Nevertheless, a severe lack of houses for sale continue to challenge the market.
Earlier this week, the NAR said that the supply of preowned houses on the market fell to a 17-month low last month. Analysts say that the rise in mortgage rate is unlikely to have a major impact on the housing market. However, forecasts suggest further increases if the Federal Reserve keeps its promise to raise interest rates at least three times in 2017. Separately, the Labor Department reported initial jobless claims rose to 259,000 in the week ending January 20, following the preceding week's 237,000 filings and surpassing analysts' expectations for an increase to 247,000.
Upcoming events: Various data releases
There are set to be released loads of data with medium impact during the next 24 hours. Such data releases should be watched, but their impact usually is not big enough for volatility traders to make profit. At 13:30 GMT the US Core Price Index and the US Personal Spending will be published. Afterwards, at 15:00 GMT the US Pending Home Sales data will be out.
Gold remains below 1,200
Daily chart: The yellow metal began the week higher due to US Dollar weakness. The fall in the Greenback during the weekend was caused by uncertainty caused by US politics. Particularly, Donald Trump's signed policies are making their impact of uncertainty on the financial markets due to their unforecastable nature. From a technical perspective, the bullion is likely to surge up to the newly calculated weekly PP at 1,196.86. However, the commodity price is most likely to bounce off from the resistance level afterwards.SWFX traders become neutral
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being around 1,250 in May
Traders who were asked regarding their longer-term views on gold between December 30 and January 30 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, 36% (+2%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.