On Friday, the top event of the week is set to take place, as the head of the Federal Reserve, Chairman Powell, is set to give a speech on monetary policy at the Jackson Hole Symposium. Last year's speech was the catalyst for the September drop of the financial markets, as the USD gained value.
XAU/USD short-term forecast
The target for the surge of the metal is the 1,910.25 mark, where the price was headed at the time of writing. A move above 1,910.25 could encounter resistance in the upper trend line of the channel down pattern. However, note that the pattern's lines were pierced on August 17. It might not have enough strength to impact the price. Higher above, note the 1,920.00 and 1,925.00 levels.
On the other hand, a decline of the commodity would look for support in the 1,902.50/1,905.00 range and the 200-hour simple moving average. Further below, take into account the 50 and 100-hour simple moving averages and the 1,895.00 level. Even further below, the 1,885.00/1,886.75 range is set to act as support.
XAU/USD daily charts review
On the daily candle chart, the metal has passed below the 200-day simple moving average and the 1,900.00/1,915.00 range. Both of these have been confirmed as resistance.A move above 1,915.00 is expected to face the combination of the 50 and 200-day simple moving averages, before approaching the resistance levels near 1,950.00. On the other hand, a decline could find support at 1,880.00 or 1,850.00.
Daily Candle Chart
Gold traders are mostly long
On the Swiss Foreign Exchange, traders are 72% bullish on gold, as that proportion of open Gold positions are long.
In the meantime, pending orders in the 1000 point range around the current price are 78% to sell.