On Friday, take into account that the release of the European, United Kingdom and United States Markit Manufacturing and Services Purchasing Managers Indices are set to be published and impact respectively the Euro, Pound and the US Dollar. The publications are scheduled to be done throughout the day.
XAU/USD short-term forecast
In the near term future, the commodity price is expected to resume its surge and book new high levels. The surge is expected to be slowed down by the upper trend line of the channel pattern and round price levels.
However, a potential decline would have to pass below the 1,995.00 mark and the approaching 50 and 100-hour simple moving averages near 1,990.00 and 1,985.00. Further below, note the 1,980.00 level and the lower trend line of the channel pattern.
XAU/USD daily charts review
On the daily candle chart, the price has the 1,950.00/1,965.00 range as support. Passing below these levels and the 200-day SMA could result in the price looking for support in the 50 and 100-day SMAs near 1,930.00. Further below, note the 1,900.00 mark.On the other hand, the metal has to break the 2,000.00 mark to reach the high level zone at 2,065.00/2,080.00.
Daily Candle Chart
Gold traders are shorting
On Monday and Tuesday, the Swiss Foreign Exchange, traders were 54% short on gold, as that proportion of open Gold positions were short.
In the meantime, pending orders in the 1000 point range around the current price have been 56%-64% to buy.
On Wednesday, 59% were short and orders were 61% to buy.