Sasha Singh
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Gold fluctuating ahead of New Home Sales Data

XAUUSD : 4 Hour Chart

Gold is trimming its gains on the 4 hour chart as the investors are waiting for the new home sales data dampening the demand for safe haven. The commodity found little support yesterday recovering from the lowest levels since January as U.S. started airstrikes in Syria raising concern over geopolitical risks. However seems like the demand for US dollar remain supported as investors continues to expect Fed to start increasing interest rate sooner. The commodity tried to breach the falling resistance trend line of the descending triangle but was not able to hold the gains. According to the current trend the commodity should decline below the key support at 1211.71.

Not much important data releasing today apart from New Home Sales data which is coming out at 10:00 AM EDT. If the data beats the economists expectation we might see the commodity extending losses on the chart.

XAUUSD : Daily Chart

On the daily chart, the 100 day SMA is just about to cross the 200 day SMA signaling some losses in commodity. If gold doesn't decline below the key support at 1211.71 , we might see the commodity try rising for one more time however the gains would be limited.