Gold uninspired by a weak US data

FXStreet (Mumbai) - Gold prices remain largely unchanged after the weak US Housing Starts and Building permits data November hit the wires.

The yellow metal has not been able to extend gains from the pre-data level of USD 1209/Oz levels despite of a weaker-than-expected housing data in the US. The Housing starts in November fell 1.6%, missing median estimate of a 3.1% rise, and lower than the upwardly revised previous month’s rise of 1.7%. Meanwhile, Building Permits fell 5.2% in November, beating the estimate of 2.5% fall, and much lower than the upwardly revised previous month’s gain of 5.9%.

Moreover, the yellow metal is down from the high of USD 1223.80 hit a couple of hours back. Moreover, the Ten-year treasury yields have recovered 5.2 basis points to trade at 2.061%.

Gold Technical Levels

Gold has an immediate resistance at 1212.94 (10-DMA), above which prices may re-test 1218.60 (5-DMA). Meanwhile, support is seen at 1208.00 and 1200.00 levels.

UK Inflation forecast for December 2014 – RBS

Ross Walker of RBS forecasts the UK inflation readings for December 2014, anticipating CPI to fall to 0.6% from November’s 1.0%.
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