Gold jumps to 1,550.00

As expected, the metal surged on Thursday. By the middle of Friday's London trading hours, the yellow metal's price had reached the 1,550.00 level.

On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT. On the same day, the FOMC Meeting Minutes will be published at 19:00 GMT.

Next week, data releases will start on Tuesday at 15:00 GMT. The US ISM Non-Manufacturing PMI will be released at that time.

On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.

However, the last release caused a move on the EUR/USD above ten pips. It is the criteria whether to take or not take into account a data release.

The week will end with the three US employment data sets being published at 13:30 GMT.

Next week's scheduled event historical data tables have been published. Click on the link below to read the article.

XAU/USD short-term forecast

Gold broke the resistance of the 1,525.00 level on Thursday. It resulted in a sharp surge, which reached the target of the 1,544.31, which was expected to be reached only next week. Moreover, by the middle of Friday's trading, the 1,550.00 level was touched.

The metal's price has two possible scenarios. The first one is a possible consolidation by trading sideways. That is expected due to the metal surging too sharply and being overbought now.

On the other hand, the momentum of the surge could continue. In that case the price would test the resistance of the 1,550.00 and the historical high level of 1,554.93.

Hourly Chart

Daily Chart

Traders short gold

Since Thursday, on the Swiss Foreign Exchange 58% of open gold position volume was in long positions.

Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 73% of orders were to buy and 27% to sell.