Gold dips ahead of U.S. Existing Home Sales – What to Expect?
Arslan Butt • 1 min read
Gold’s volatility remains in check during the Asian and European session as investors await the existing home sales figures from the United States. In addition to that, four of the central bank officials are expected to speak during the ECB’s forum of central banking. Fed’s Powell will be in focus for any remarks on Trump’s aggressive tariff plan. During the U.S. session, it will be fun to trade the U.S. existing home trade.
How it’s going to impact gold? Let’s find out…
Recalling FX Leaders June 20 – Economic Events Outlook – World’s Central Banks in Focus, the National Association of Realtors will be releasing the existing home sales data at 14:00 (GMT). It’s forecasted to be 5.52M vs. 5.46M. The positive forecast can place bullish pressure on the U.S. dollar today.
Thing is, there’s a negative correlation between gold and the U.S. dollar. Hence, better than expected existing home sales are likely to drive bearish waves in gold. So, you need to trade gold with bearish sentiments.
On the 4- hour chart, gold has violated a strong support level of $1,273 and now the same level is working as a resistance. The bearish setup is likely to provide a strong support to gold near $1,269 and the violation of this can lead gold prices towards $1,264.
Gold – XAU/USD – Trading Plan
The idea is to stay bearish below $1,276 with a stop above $1,280 to target $1,269 and $1,265. Don’t forget to monitor the existing home sales today. Good luck!