Gold reached the target of 1,310.00 on Wednesday. After touching the level gold began to decline.
By the middle of Thursday's trading session the yellow metal's price was located at the 1,305.00 level. At that level the price was supported by the 55-hour SMA and the lower trend line of a channel up pattern.
On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All events are covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
XAU/USD short term forecast
Yesterday, the price for gold reached the resistance level formed by the Fibonacci 23.60% retracement at 1,309.31.
If the support formed by the 55-hour SMA at 1,304.49 holds, it is likely that the XAU/USD reaches the upper boundary of the descending triangle pattern located circa 1,311.00 and reverses south.
Otherwise, it is expected, that some bearish momentum prevails in the market, and the price for gold declines to the support level formed by the monthly PP and the 100-hour SMA at 1,299,44.
Hourly Chart
On Thursday, Dukascopy Analytics added a new descending channel pattern on the daily chart of gold. The upper trend line of the channel was located just above the 1,310.00 level.Meanwhile, take into account that the rate had reached and pierce through the 55-day simple moving average, which was located at 1,307.75.
Daily Chart
Traders continue to short the metal
Traders continue to short gold. On the Swiss Foreign Exchange 59% of the total open position volume was in short positions on Thursday.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders in that range previously were set to sell in 54% of cases. On Thursday, 58% of orders were set to buy.