Gold breaks large scale pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Gold has continued to test the 1,950.00 mark and the upper trend line of the channel up pattern. However, the release of the US monthly employment data strengthened the US Dollar on Friday at 12:30 GMT. The event resulted in the metal's price declining as low as 1,935.00 by 15:00 GMT.

Economic Calendar Analysis



Next week, watch the US ISM services PMI release on Wednesday at 14:00 GMT. Besides this release, there are no notable events scheduled that can impact the financial markets.

XAU/USD short-term forecast

If the commodity price declines below 1,935.00, the 1,930.00/1,932.25 range is expected to act as support. Further below, note the lower trend line of the channel up pattern and the combination of the 200-hour simple moving average and the 1,920.00/1,923.00 range.

In the case of a price surge, the 1,940.00 level could turn into resistance, before the 1,950.00 would be tested once again.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal has broken the upper trend line of the channel down pattern that has guided it since early May. If the price also passes above the 100-day SMA and the resistance zone at 1,955.00/1,965.00, it could signal the end of the broader decline and a start of a recovery.

Daily Candle Chart


Gold traders are mostly long

On Friday, the Swiss Foreign Exchange, traders were 61% bullish on gold, as that proportion of open Gold positions were long.

In the meantime, pending orders in the 1000 point range around the current price are 85% to buy.

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