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Housing data continues to show a strong foundation as this morning’s reports on January Housing Starts and Building Permits both exceeded expectations by more than 100K! The last time both reports exceeded expectations by more than 100K was last August’s report. Before that, though, you have to go back more than 10 years to find the next occurrence. That was the good news. The bad news was that PPI also exceeded expectations by a wide margin with the highest reported reading (0.5%) since October 2018. Futures haven’t budged much on the news, though, and are still indicating a positive open of about 0.25%.
Read today’s Bespoke Morning Lineup below for the latest on the impact of the coronavirus (including an important milestone in reported cases), earnings data out of Europe, and Japanese trade data.
We’ve been highlighting the bullish pattern in the price of gold for several weeks now, and after bouncing at support in the prior couple of weeks, prices broke out overnight to their highest levels in about seven years. With price convincingly above the $1,600 level, look for that psychological level to provide support going forward.
What’s interesting about the recent rally in gold, and as we discussed in last night’s Closer, the current rally has coincided with a stronger dollar, which overnight rallied to its best levels since last summer, so it’s not a weaker dollar that’s causing the recent rush into gold.