Gold prices edge lower on Thursday morning, but sustained near seven-week high. Yesterday, the ADP employment report came in just below expectations led to the drop of US dollar to its lowest level of the year. This has made gold attractive for other currency buyers.
As markets expecte the US nonfarm payrolls on Friday at 12:30 GMT, gold prices fell in Asia with the focus on dollar.
Technical Outlook
For the last four consecutive days, Gold prices were unable to close above $1270, and created a consolidation mode.
The current pattern has formed an “Ascending broadening wedge”, support holds at $1261. The Wedge support line has broken as seen in the chart, indicating a negative bias towards $1250-1245. On the other hand, a breaks of the last high at $1273 will push prices towards the next target at $1283.