Gold: Triangle Thrust UpdateAn update to our previous idea (see link below). An unexpectedly disappointing gauge of employment costs in the US brought strong bearish pressure on USD, shooting the EUR/USD well above the $1.10 level, as well as lifting Gold price up to $1100 handle. No trendline break in XAUUSD yet.
The Employment Cost Index showed the lowest increase in workers' pay since 1982, spurring general disappointment. As the market remains strongly sensitive to the labor market and inflation worries related to wages, such indices are still monitored due to possible Federal Reserve tightening steps in September. Wages, making up approximately 70% of this index, rose 2.1% over the year in June, lower than the post-recession high of 2.6% at the beginning of the year. The gain in wages and benefits during the second quarter was the weakest since 1981, growing only 0.1%.
