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.

Hourly Chart

Trend: Consolidation