The United States (US) published positive ADP data beat expectations showing that the number of people hired to work for private companies increased in September compared to the previous month.
The increase to 143,000 for September compared to August's figure bodes well ahead of the NFP jobs report at the end of the week.
However, if you look at the movement of gold prices, there was no significant fall after the data was released as the increasingly tense war between Iran and Israel is still the main concern in the market.
Investors are in a cautious state at this point making the focus more likely to be safe assets which have given gold an edge.
On the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to be still below the 2670.00 level, although there was an attempt to break through that resistance in yesterday's New York session.
On Thursday's trading, prices are seen to be still in a bearish state and investors are still watching for indications of further price movement.
If the price decline continues, the 2600.00 level needs attention as it is seen as the RBS (Resistance Become Support) zone that has shown a reaction to the previous week's trading.
If, the bearish trend still continues by passing 2600.00, there are two more RBS zones that need attention, namely 2530.00-2500.00 and 2480.00-2470.00.
There is also a possibility for gold prices to climb if the data to be released tonight such as the US jobless claims and the ISM survey fail to support the US dollar to strengthen.
The situation in the Middle East at this time should also be taken into account because if the situation worsens, the positive numbers recorded tonight will not be able to weaken the gold metal.
For the upside, the resistance level of 2670.00 will be the target for price testing to convince investors that the bullish trend will continue.
If successful, gold has the potential to further break its recent all-time high, with some targeting a height of 2700.00 to reach.
