Gold prices turn down and break lower to $1,080 area after Housing data

on December 22 2009 10:43 AM

FXstreet.com (Barcelona) - Gold's post GDP upswing from $1,086 area has been capped at $1,094 and the yellow metal's prices reversed gains after upbeat housing figures, breaking below previous low at $1.085 to reach a fresh 6-week low at $1,082 as Dollar soared to multi-month highs.

U.S. existing Home sales rose at a 7.4% pace in November, to an annual rate of 6.54 million units beating market consensus of a 2.5% increase to an annual rate of about 6.30 million units.

The Dollar soared across the board, ans USD/JPY broke previous high at 91.65 to hit a fresh 7-week high at 91.80. GBP/USD dipped below 1.5975 and hit a fresh 2-month low at 1.5955, and the EUR/USD dropped from 1.6290 to test 3-month low at 1.4260/65.

According to the Oil N' Gold Team, Gold is on the downside, targeting $1,079.4 area: Intraday bias in gold remains on the downside and the current decline from 1227.5 is still expected to continue to 50% retracement of 931.3 to 1227.5 at 1079.4. Break there will target 61.8% retracement at 1044.4 next.

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