Gold Technical Analysis: Consolidation likely ahead of US employment cost data

Gold is looking oversold as per the hourly chart relative strength index (RSI). Notably, a bullish RSI divergence would be confirmed if the current or the next hourly candle report gains, without printing lows below the session low of $1,215.
The action on the hourly chart indicates the pullback from the recent highs above $1,.243 could be nearing an end, however, only an acceptance above the falling trendline would put the bulls back into the driver's seat.
A break above the falling trendline will likely remain elusive if the US employment cost index, due for release at 12:30 GMT, indicates that wage-price inflation picked up the pace in the third quarter.

Omkar Godbole FXStreet Contributor

Hourly Chart

Trend: Consolidation

XAU/USD

Overview:
    Last Price: 1217.64
    Daily change: -5.4e+2 pips
    Daily change: -0.438%
    Daily Open: 1223
Trends:
    Daily SMA20: 1226.14
    Daily SMA50: 1208.88
    Daily SMA100: 1207.1
    Daily SMA200: 1248.52
Levels:
    Daily High: 1230.58
    Daily Low: 1219.6
    Weekly High: 1243.43
    Weekly Low: 1219.9
    Monthly High: 1212.64
    Monthly Low: 1180.63
    Daily Fibonacci 38.2%: 1223.79
    Daily Fibonacci 61.8%: 1226.39
    Daily Pivot Point S1: 1218.21
    Daily Pivot Point S2: 1213.41
    Daily Pivot Point S3: 1207.23
    Daily Pivot Point R1: 1229.19
    Daily Pivot Point R2: 1235.37
    Daily Pivot Point R3: 1240.17

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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