Gold's gradual surge has reached a new round price level. Namely, the 1,930.00 level was reached on Wednesday. Afterwards, a decline followed.
On Thursday, the commodity price reached the support of the 55-hour simple moving average near 1,913.00. The SMA stopped the metal's decline.
Economic Calendar Analysis
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the US Markit Flash Services and Manufacturing PMIs could cause a move.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The XAU/USD exchange rate has revealed a medium-term ascending channel.
From a theoretical point of view, it is likely that the exchange rate could re-test the lower channel line located circa 1,905.00. If the given channel holds, a reversal north could follow.
Meanwhile, note that yellow metal could gain support from the 55-hour moving average near 1,914.00. Thus, the rate could re-test the upper channel line located circa 1,930.00 in the short run.
Hourly Chart
On the daily candle chart, the yellow metal has ended sideways trading between the Fibonacci retracement levels. Namely, the 38.20% Fibo at 1,916.78 was passed.
However, the metal has encountered the resistance of the 55-day SMA, which on Thursday was located at the 1,932.21 mark.
Daily Candle Chart
Sentiment finally changes
Since last week's Thursday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 61% was long.
This Thursday, the sentiment became 59% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 80% to buy the metal.
The orders were 72% to buy on Wednesday.