Gold declines after touching 2,430.00

Source: Dukascopy Bank SA
The surge of the metal's price has surged above the 2,400.00 mark. However, resistance was found in the 2,430.00 mark and a sharp decline occurred.

However, it appears that after a 100 dollar drop the price found support at 2,330.00. The follow up surge has encountered resistance in the range that surrounds the 2,350.00 level and the 50 and 100-hour simple moving averages.

Economic Calendar Analysis



On Thursday, a minor move could occur due to the weekly Unemployment Claims release at 12:30 GMT. More employed people indicate at more consumer demand that also pushes prices higher.
On Thursday, at 12:30 GMT, additional US inflation data will be released. The less noteworthy Producer Price Index will be published.

XAU/USD short-term forecast

A move above these levels would result in the metal once again facing resistance in the 2,400.00 and 2,430.00 levels. A passing above the prior resistance levels is expected to reveal new levels. It is highly likely that 2,450.00 will act as resistance.

On the other hand, a decline is set to look for support in the 200-hour simple moving average and the 2,320.00 level.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal shows to be massively overbought, as it has left far below the current price the daily simple moving averages.

Daily Candle Chart


Gold traders recover losses

Since previous Monday, 72-74% of Dukascopy traders were short, as that proportion of open position volume was in short positions.

In the meantime, pending orders in the 1000-pip range around the current price were 88% to buy the metal.

It appears that gold bears have regained some of their losses.

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