On Friday, the yellow metal was making a second attempt to pass the resistance of the 1,898.50 mark.
In theory, the rate could pass this level as soon as the 55-hour SMA comes closer to the commodity price.
Economic Calendar Analysis
There are no more notable events scheduled for this week.
Next week, notable macroeconomic events are set to start with the biggest and most important of them all, the Federal Reserve is scheduled to make a Rate Statement and Rate Announcement on Wednesday, at 18:00 GMT.
On Thursday, pay attention to the US Advance GDP and the weekly US Unemployment Claims that should be published at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
From the one hand, it is likely that yellow metal could continue to extend gains against the US Dollar in the nearest future, as the commodity could gain support from the 55-hour SMA near 1,874.00.
On the other hand, it is likely that gold could trade sideways against the Greenback in the 1,880.00/1,900.00 area within the following trading session.
Hourly Chart
On the daily candle chart, gold has broken the trend line that connects the 2019 and 2020 high levels. Next resistance on this chart is the historical high level at 1,912.40.
Daily Candle Chart
Short sentiment declines
Since Wednesday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 65% was short.
On Friday, the sentiment was 61% short. Traders had either closed short positions or opened long positions.
Meanwhile, in the 1000-pip range around the metal's price the orders were 68% to buy.
The orders were 93% to buy on Thursday.