Gold retraces down after booking new high

Source: Dukascopy Bank SA
The consolidation of gains of the metal's price ended with a sharp surge that shortly reached above 2,140.00. Namely, the metal surged by 4.61% as a new month started. However, the gains were quickly erased, as the price returned to levels near 2,020.00.

On Wednesday, the price was finding support in 2,020.00 and resistance was provided by the 50-hour simple moving average.

Economic Calendar Analysis



On Friday, watch out for the US employment data release. The release is bound to impact the financial markets through the value of the US Dollar. The publication is set to consist of the Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate.

XAU/USD short-term forecast

A move above the 50-hour simple moving average could encounter resistance in the 2,040.00 and 2,050.00 levels and the 100-hour simple moving average between the two levels. Higher above, note the 2,060.00 and 2,075.00 levels that have shown to be capable of acting as resistance and support.

On the other hand, a decline is expected to look for support in the 2,010.00 level, before the price approaches the 2,000.00 mark.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal pierced the upper trend line of the channel up pattern that has guided it up since the start of October. However, most importantly the price broke the high level range of 2020, 2022 and 2023 at 2,065.30/2,082.80. Namely, the price has not been this high in this century.

Daily Candle Chart


Gold traders are still shorting



Before last week's GDP release, more short sellers showed up, as 62% of volume was in short positions. Pending orders in the 1000 point range around the current price were 57% to buy.

After the US GDP publication, traders were 63% short and orders were 53% to sell.

This week, traders were still 63% short and orders were 54% to sell.

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