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Gold Trying to Rebound But Still Below 1274.17

XAUUSD : 4 Hour Chart

Gold trying to rebound after the downbeat Non-farm Employment data but continues to trade within the range of support and resistance at 1260.98 and 1274.17 respectively as seen on the 4 hour chart. The commodity found some support at 1260.98 yesterday after the missing ADP employment change and unemployment claims data but again declined finding resistance at 1274.17 which earlier acted as support for the pair and after the release of upbeat ISM Non-Manufacturing PMI. Gold is completely reacting on the US data nowadays as the investors are expecting the Fed to increase interest rates if the economic releases continue to show the growth. If Fed does so, Gold will be declining to multi year lows.

According to the data, hiring in US slowed in August as the economy created just 142K jobs which seems to be the smallest gain since December. Economists were expecting an increase of 226K.

A break above the resistance trend line of the falling wedge is necessary to rebound the commodity. However if the prices falls down breaking below the support trend line, the falling wedge pattern will fade away and the commodity will continue to follow the bearish trend.