On Thursday, the yellow metal did not find enough support in the 55, 100 and 200-hour simple moving averages. Instead, the metal dropped, passed the lower trend line of a channel up pattern and touched the 1,895.00 mark.
On Friday, the commodity price was recovering after the recently experienced drop. By the middle of the day, the price had reached the 1,910.00 level.
Economic Calendar Analysis
On Friday, the US Markit Flash Services and Manufacturing PMIs could cause a move.
On Tuesday, the US Durable Goods Orders and Core Durable Goods Orders will be released at 12:30 GMT.
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. The US Advance GDP and the Unemployment Claims would be released at that time. However, recently both of them have not caused notable moves
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The surge of the yellow metal was expected to test the resistance of the 1,915.00 level, which was strengthened by the 55-hour simple moving average.
In the case of the 1,915.00 mark being passed, the rate would first reach for the 1,920.0 level and afterwards the 1,930.00 mark.
On the other hand, in the case of a decline, watch the 1,900.00 and the 1,895.00 levels.
Hourly Chart
On the daily candle chart, the yellow metal ended sideways trading between the Fibonacci retracement levels. Namely, the 38.20% Fibo at 1,916.78 was passed.
However, the metal encountered the resistance of the 55-day SMA, which caused the recent decline.
Daily Candle Chart
Traders are long on gold
On Friday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 60% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 63% to buy the metal.
The orders were 80% to buy on Thursday.