Gold Price Prediction for August 31, 2017

Gold prices edged lower on Wednesday following a stronger than expected increased in U.S. private payrolls. Prices are forming a bull flag pattern which is a pause that refreshes higher, following a breakout in gold prices on Monday. Support is seen near former resistance at 1,300, while resistance is seen near the November 6, 2016 highs at 1,337.

Privat Payrolls Were Stronger than Expected

U.S. ADP reported private payrolls surged 237k in August, versus expectations of a 170K rise, after an upwardly revised 201k July gain. The service providing sector saw a 204k gain, while employment in the goods producing sector rose 33k. Details on the goods sector showed manufacturing jobs increased 16k, with construction up a hefty 18k, with a 1k drop in mining. A 56k climb in transport supported the strength in the service sector, with leisure adding 51k, while education rose 45k. Professional business services added 39k.