Gold prices whipsawed and generated an outside day which is usually a reversal pattern, but it reversed Wednesday’s correction. This came following a stronger than expected ADP payroll report. Prices closed near their highs after hitting a higher high and a lower low, testing support which was the former breakout level of 1,306. Resistance is seen near the September highs at 1,352. Momentum is accelerating higher as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. The RSI is printing a reading of 72, above the overbought trigger level which could foreshadow a correction.
ADP was Stronger than expected
The 250k December ADP rise beat the 190K median private BLS payroll estimate with a 225k total BLS payroll increase, following a trimming in the November rise to 185k from 190k that widened the gap to the 221k private BLS jobs increase in that month. A 28k December rise for goods jobs underperformed robust factory sentiment readings, with restrained gains of a 9k for factories and 16k for construction, but with a robust 222k service employment climb that accounts for the headline overshoot.
