Gold prices on downtrend with falling wedge pattern

gold

04-06-2018 11.03 AM

Gold prices dropped below $1,300 as an upbeat jobs report covered investor expectations the Federal Reserve would hike rates at its meeting later this month, cutting back demand for gold.

Private payrolls grew by 223,000 for the May, a sharp uptick from the 163,000 in April, according to a report released Wednesday by ADP and Moody's Analytics. That beat economists’ forecast of 189,000.

The jobless rate fell to 3.8%, beating economists’ forecasts for unchanged reading of 3.9%. Average hourly earnings grew 0.3% in May, topping expectations for 0.2% rise.

Technical chart

gold

Technical outlook

Gold prices hold on resistance line where “Falling Wedge pattern” is on a daily chart. Gold prices were unable to break and close above at $1305 for the past one week which is the consolidation area with the psychological prices sentiment at $1300. The gold trend is currently on a negative side. Further analysis can be made, if it breaks above $1305 then it would turn bullish towards $1315-1325. Alternatively, if it is unable to break above, then selling pressure would push to negative side towards $1290-1275 level.

   
 
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