The precious metal was traded a bit volatile near the highs on Thursday. Price action was rather muted as gold traders await the payrolls report due later today. A weaker payrolls report could potentially cement expectations of a July rate cut. This comes following the ADP private payrolls once again falling short of expectations. The pace of hiring was also somewhat slower compared to the previous months.
Will Gold Breakout Higher?
Given the current set up, gold prices are likely to see a breakout in either direction. To the upside, price will need to breach past the recent highs of 1431 in order to confirm the upside bias. There is a cup and handle type of pattern forming near the current highs that validates this view. To the downside, if the 1404 level of support gives way, then gold could extend declines to1354.
