The previously started decline of the gold price continued on Friday. The metal had fallen down to the 1,290.00 level.
In addition, the decline was expected to continue in the near future.
This week's data releases have ended. Wait for Monday, as on that day Dukascopy Analytics will publish the weekly Economic Calendar Overview. In the video all of the next week's data releases will be reviewed and question can be asked in the comments.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
XAU/USD short term forecast
During yesterday's trading session, the price for gold dropped to the psychological level at 1,290.
Given that the XAU/USD exchange rate is pressured by the 200-hour SMA at 1,295.67, it is likely, that some downside potential prevails in the market for the short run. A possible downside target is the psychological level at 1,285.00.
On the other hand, the price for gold could trade sideways, trying to surpass the given resistance level.
It is the unlikely case that the rate breaches the given resistance and jumps higher than 1,300.00 level due to the resistance formed by a combination of the 55– and 100-hour SMAs, as well the monthly PP.
Hourly Chart
On Thursday, Dukascopy Analytics added a new descending channel pattern on the daily chart of gold. The upper trend line of the channel was located just above the 1,310.00 level.The pattern's resistance managed to push the commodity price downwards.
The daily chart indicates that the rate is set to meet with the support of the 100-day simple moving average, which caused the previous surge. On Friday, the SMA was located at 1,286.85.
Daily Chart
Traders continue to short the metal
Traders continue to short gold. On the Swiss Foreign Exchange 59% of the total open position volume was in short positions since Thursday.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders in that range were set to sell in 51% of cases.