Gold prices were down 0.37% on the day on Wednesday. The declines in the gold prices were modest as investors remain on the sidelines ahead of this week’s official payrolls report. On Wednesday, the ADP payrolls report disappointed, with the private sector adding just 129k jobs compared to a revised 197k jobs in February. The March payrolls saw the smallest pace of increase since September 2017.
Can Gold Breakout from the Wedge Pattern?
XAUUSD continues to maintain its holding pattern ahead of tomorrow’s payroll report. With prices firmly supported near the 1287 – 1284 level, XAUUSD is consolidating into a descending wedge pattern. Price is currently attempting to break out from this pattern. Gold prices are likely to extend the gains to 1301.50 and then to 1305. Resistance is very likely to form at this level. Further gains can be seen only on a continuation above this level.
