Gold surges as traders go short

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The price for the yellow metal has passed the resistance of the 1,880.00 mark. Moreover, the commodity has retrace down and confirmed support at 1,882.90. Due to that reason the 1,880.00/1,882.90 zone has been marked as support.

At the start of Thursday's US trading hours, the price was approaching the 1,900.00 mark. In the meantime, it was spotted that the bullion had been surging in a channel up pattern since February 3.

Economic Calendar Analysis



During next week, there are various types of events, which could impact different currencies. However, among the events it is clear that the top one is the quarterly US Preliminary Gross Domestic Product data release on Thursday at 13:30 GMT.

On Tuesday, the US Markit Manufacturing and Services Purchasing Managers Index survey results are expected to cause move on all USD pairs and assets.

The week's notable events will end on Friday with the US Durable Goods Orders and Core Durable Goods orders publication at 13:30 GMT.

Click on the link below to find out more about data releases of this and other currency exchange rates.

XAU/USD short-term forecast

If the metal's price continues to surge, it would most likely encounter resistance in the 1,900.00 mark, before aiming at the upper trend line of the February channel up pattern.

Meanwhile, a potential decline could look for support in the 1,880.00/1,882.90 zone. Below the support zone, the lower trend line of the channel up pattern and the 50 and 100-hour simple moving averages might stop a decline near 1,870.00.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the break out of the large scale triangle pattern is heading to the May high level zone, which is located above the 1,900.00 mark.

Daily Candle Chart


Short sentiment increases

On Thursday, the sentiment on the Swiss Foreign Exchange was 66% bearish, as 66% of open position volume was in short positions.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 69% to sell the precious metal.

On Wednesday, the sentiment was 64% short and pending orders were 83% to sell.

Actual Topics

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