On Friday morning, the rate went up to the resistance level formed by the 55-, 100- and 200-hour SMAs, located circa 1,422.00.
Economic Calendar Analysis at 12:00 GMT
Current week will end with the US Advance GDP data release on Friday at 12:30 GMT.
XAU/USD short-term forecast
On Thursday, the price for gold fell to the psychological level at 1,415.00. During today's morning, the XAU/USD exchange rate raised to the resistance level formed by the 55-, 100– and 200-hour SMAs at 1,422.00.
If the given resistance holds, it is expected, that gold would depreciated against the US Dollar in the short run. A possible downside target is the 1,400.00/1,405.00 area. Also, the rate could trade sideways, trying to surpass the given resistance.
If the given moving averages do not hold, it is likely, that the exchange rate could extend gains. A possible upside target is the psychological level at the 1,435.00 mark.
Hourly Chart
On the daily chart, it can be observed that the metal pierced the resistance of the August 2013 high level at 1,434.70. The event signals that the metal can continue to surge.
Daily Chart
Traders remain short on gold
On Friday, 68% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bearish - 55% were set to sell, and 45% of orders were set to buy.