Yesterday, the XAU/USD exchange rate tried to breach the long-term ascending trend north.
During today's morning, the rate reversed south to the psychological level at 1,425.00.
Bureau of Economic Analysis released the US Final GDP data, which came out in line with expectations of 3.1%.
According to the official release: "The first-quarter percent change in real GDP was the same as previously estimated, reflecting upward revisions to non-residential fixed investment, exports, state and local government spending, and residential fixed investment that were offset by downward revisions to PCE and inventory investment, and an upward revision to imports."
For this pair the week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
XAU/USD short-term forecast
On Tuesday, the XAU/USD exchange rate skyrocketed to the upper boundary of the long-term ascending channel at the 1,435.00 mark. During today's morning, the rate reversed south.
From a theoretical point of view, it is expected, that the price for gold could continue to decline. Note, that gold is supported by the 55-, 100– and 200-hour SMAs, currently located in the 1,400.09/1,406.96 range.
On the other hand, the exchange rate could reverse north from the psychological level at 1,425.00 and re-test the upper channel line. It is unlikely, that the price for gold could exceed the 1,439.58 mark due to the resistance of the Fibonacci 0.00% retracement.
Hourly Chart
On the daily chart, it can be observed that the decision to mark historical high levels was a correct one.
Namely, one can observe that the zone surrounding the August 2013 high level provided resistance to the commodity price.
Daily Chart
Traders are neutral on gold
On Wednesday, on the Swiss Foreign Exchange 54% of open gold position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bullish - 71% of orders were set to buy.