A weaker than expected ADP jobs report gave gold a boost early in the NY trading session, though gold quickly fell back after hitting 1410 to close around 1400.
We expect the quiet choppy trading to continue until the release of the keenly anticipated Non Farms Payroll (NFP) number tomorrow, with the only data released today being the weekly jobless claims that rarely sees much of a reaction from the markets.
Expectations for the NFP number may have been slightly tempered following the release of the ADP number yesterday, though the two numbers do not have a particularly strong correlation.
The consensus forecast is for 172,000 jobs to have been added to the US economy in May - a stronger number will see gold sell off hard, though a much weaker number could provide gold with a boost, even if this turns out to be a temporary rise
The dollar continues to exhibit weakness after failing to break through key resistance at 84 and has fallen through near term support at 82.5. If this level is not regained quickly, the dollar could see further selling in the short term.
Oil is trading slightly higher at 94.30, though is in a clear downtrend channel with a series of lower highs and lower lows on the daily chart.
Today's video for subscribers looks at the triangle consolidation in more detail and our thoughts regarding the NFP number.