The yellow metal's price surged earlier than expected, as it passed the 1,950.00 level and reached the 1,965.00 mark at mid-day on Thursday. Although, this level provided resistance and caused decline back down to 1,940.00.
On Friday, the rate was trading among the hourly simple moving averages in the range from 1,937.00 to 1,945.00.
Economic Calendar Analysis
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Next week, on Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The favoured future scenario is that the 100-hour SMA approaches the price and together with the 55 and 200-hour SMAs push the metal into another surge. Another surge, would once again test high round price levels.
On the other hand, the metal could trade sideways in a narrow range from 1,940.00 to 1,950.00.
Hourly Chart
On the daily candle chart, the metal stands at the 50.00% Fibonacci retracement level at 1,947.16. In theory, the rate should aim at the resistance of the 61.80% Fibonacci retracement level at 1,977.55.
In the meantime, the support of the 55-day simple moving average had approached the metal. It signals that a surge of the price could occur.
Daily Candle Chart
Traders are long
On Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 57% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 65% to buy.