- Gold price faced continuous offers against the US Dollar, as it moved down from the $1295 swing high.
- The price broke a major support at $1264 on the 4-hours chart to open the doors for more declines.
- Today, the US ADP Employment Change for April 2017 released by the Automatic Data Processing, Inc. posted 177K, a bit more than the forecast of 175K.
Gold Price Technical Analysis
In early April 2017, Gold price traded towards $1300 against the US Dollar. It traded as high as $1295 where it faced heavy offers and started a downside move.
The price faced a lot of selling pressure recently once it moved down below the 38.2% Fib retracement level of the last wave from the $1239.71 low to $1295.71 high.
The recent decline in prices clearly suggests a downtrend, as there were clear breaks below the $1300, $1280 and $1265 support levels.
Gold Price 4-hour Chart
Recently, the price broke a major support at $1264 on the 4-hours chart. It further cleared the path for more declines towards $1250-40.
Moreover, the price also broke the 61.8% Fib retracement level of the last wave from the $1239.71 low to $1295.71 high, which means the price could even test the last swing low of $1240.
On the upside, there is a bearish trend line positioned at $1265 on the same chart, which may be considered as a pivot zone in the near term.
US ADP Employment Change and Fed Interest Rate Decision
Today in the US, the ADP Employment Change for April 2017 was released by the Automatic Data Processing, Inc. The market was expecting a chance of 175K in April 2017, compared with the last reading of 263K.
The actual result was mostly as the market expected, as the ADP Employment Change for April 2017 was 177K. On the other hand, the previous reading was revised down from 263K to 255K.
Commenting on the report, the vice president and co-head of the ADP Research Institute, Ahu Yildirmaz, stated:
In April we saw a moderate slowdown from the strong pace of hiring in the first quarter. Despite a dip in job creation, the growth is more than strong enough to accommodate the growing population as the labor market nears full employment.
Later today, the Fed interest rate decision is lined up, which might impact Gold price, and could push it easily below $1250 or above $1265.