Gold continued to post gains on Thursday but the pace of gains look to be slower than the previous sessions. Perched near a four-month high, the precious metal awaits further clues from today’s payrolls report. Given the recent weak patch of jobs report from ADP, the prospects of a lower than forecast payrolls could give gold a boost.
Gold Forms a Minor Double Top
Gold prices were seen consolidating near the top end of the rally. Price action formed a minor double top pattern near 1337.75. If this double top pattern holds, then we could expect some downside. The lower support at 1320.80 remains the main target to the downside with further declines likely. The unfilled gap from earlier this week at 1305.37 will be the initial target.
