Can spot gold bears trigger the bearish confirmation signal, while ahead awaits Friday’s key U.S. jobs report
The precious yellow metal failed to display any significant moves Wednesday after displaying a blow-off top, which is “notoriously hard” to trade given the volatility, volume, and rate of price change.
This pattern is often regarded as a red flag in trading, indicating the end of a long uptrend.
Meanwhile, its rival, the U.S. Dollar Index (U.S. DXY), managed to edge higher to 104.10.
More reports came out Wednesday that have suggested the U.S. Federal Reserve may hold steady on interest rates at its next meeting next week.
The ADP National Employment report confirms that the U.S. labour market is cooling after the data showed private payrolls increased by 103,000 jobs in November.
On Friday, traders will get a more comprehensive job market report from the U.S. government.
The Average Hourly Earnings are expected to inch up to 0.3% from the previous 0.2%, while the Non-Farm Payrolls look to 185K jobs added, which is a significant improvement from the prior figure of 150K while the Unemployment Rate expected to stand at 3.9%.
Weekly Jobless Claims are due on Thursday.
Technically, from the blow-off top, the posted bearish outside range day (negative), traders should be wary of further weakness (stop-loss triggered) if we witness a move beneath $2,007-11 as this should support the negative signals (mentioned) to drive the market lower and open the path to a target of $1,968-69.
No view is seen on the upside.
Based on the technicals driving the market, the Relative Strength Index (RSI) indicator 3-day lookback is negative.
The Moving Average Convergence Divergence (MACD) is weak. The ADX indicator holds a weak bull trend.
Daily Chart Spot Gold
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