On Friday, it was assessed that the commodity was finding support in the 1,795.00 level and resistance at 1,805.00. Namely, the pair was trading around 1,800.00.
Economic Calendar Analysis
The week is set to end with the release of the United States employment data at 13:30 GMT. The data release consists of the US Average Hourly Earnings changes, Non-Farm Employment Change and Unemployment Rate.
Next week, on Monday at 15:00, the US ISM Services Purchasing Managers Index might impact the US Dollar's value.
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
XAU/USD short-term forecast
A move above 1,805.00 would result in the metal trading at levels not seen since early July. In July, the 1.815.00 and 1,825.00 levels provided resistance. The same could occur during the upcoming week.
On the other hand, a decline of the price below 1,795.00 could look for support in the 1,785.20/1,786.30 zone and the 50-hour simple moving average. Further below, the 1,775.00 and 1,770.00 levels might act as support.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the resistance of the 200-day simple moving average and is testing the 1,787.05/1,808.15 zone. The zone acted as support in the first half of 2022 and as resistance in August.Daily Candle Chart
Traders reduce long exposure
On Thursday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 58% to buy the precious metal.
On Friday, the open positions were 54% long and orders were 67% to sell.