The number of Americans who filed for unemployment insurance last week decreased to 241,000, a survey from the Labor Department revealed on Thursday, following the preceding week's 243,000 filings. Meanwhile, market analysts anticipated a slight rise to 245,000 during the reported period. The number of new residential building permits issued in February fell 6.2%, the Census Bureau revealed on Thursday. Nevertheless, housing construction advanced 3% and was mainly driven by one-family house applications, whose growth hit a record since September 2007. The spike in construction was mainly attributable to the robust job market and healthier finances. Yet, high mortgage costs and increasing real estate prices remain an issue for potential home buyers.
Overall, the situation in the home-building industry remains positive, as the housing market index reached a 12-year high. The diffusion index fell to 32.8 in March, the Philadelphia Fed reported on Thursday. Nonetheless, it remained positive for eight consecutive months. The difference between firms who reported an increase in activity against decrease was 33%. Similarly, the difference between firms reported a rise in employment against unemployment was 17%. So, in general, regional manufacturers maintained optimism.
Upcoming events: Minor data
At the end of the trading week there are three data releases scheduled in the United States. However, it is highly unlikely that they will increase the volatility in the financial markets by influencing the strength of the US Dollar. First of all at 13:15 GMT the US Capacity Utilization Rate and the Industrial Production will be published. Later, at 14:00 GMT the Preliminary University of Michigan Consumer Sentiment will be released.
Gold remains near 1,225 level on Friday
Daily chart: On Friday morning the yellow metal's price remained rather unchanged, as the bullion fluctuated just above the 1,225 mark. Previously, during Thursday's trading session the bullion extended the gains, which it scored on the Federal Reserve's rate hike. However, at the 1,233.59 mark the bullion encountered the resistance of a medium term descending channel, which proved strong enough to cause a minor decline in the commodity price. It is most likely that the bullion will make another attempt to break higher, as it can be observed that on Friday morning the decline has stopped, and the yellow metal has begun to approach the weekly R1, which is located at the 1,228.89 level.Markets remain bullish
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being at 1,300 in April
Traders who were asked regarding their longer-term views on gold between February 17 and March 17 expect, on average, to see the metal near 1,300 in April. Generally, 49% (+1%) of participants believe the price will be above 1,300 in ninety days. Alongside, 39% (+1%) of those surveyed reckon the currencies will trade in the range between 1,100 and 1,300 over the next three months.