FX.co ★ Gold sets a higher low

Gold melted after US home sales data.  A guage of pending home sales increased 0.2%, after a 1.2% drop in the month of October. Economists are expecting in 2014 housing industry will grow further. Gold dropped after the data released. It holds the support at the trend line (hourly charts) due to low volatility. Traders are in holiday period. We could expect this year's low is at the level $1,180.

Gold traders' expectations are raising  about tampering, after recent data. It shows the sign of recovery in the US. Its economy is in a right track resulted Dow stood at peak levels, gold drops to lower levels. Yellow metal is trading at the level of $1,198 in Asia's trading session.

Support      $1,195     $1,192

Resistance $1,202   $1,205

Hourly chart indicates oversold levels. If today gold does not break its June's low at the level of $1,180, "a higher low of $1,187" can be shown in the chart. Gold dropped almost 31% in 2013. Serious money shifted to equities. Japan's stock market NIKKEI produced 52% gain in terms of USD.