On Friday, gold's price was making attempts to break the resistance of the monthly pivot point at 1,287.27.
In its attempts to surge higher the price was being supported by the 100-hour simple moving average near the 1,283.50 level.
At 12:30 GMT the Canadian Employment data will cause a move of about forty pips.
At the same time the US Consumer Price Index release should cause a move of up to twenty pips.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reached the resistance level formed by the monthly PP at 1,287.27.
Given that the rate is supported by the 55– and 100-hour SMAs located circa 1,284.00, it is likely, that some upside potential could prevail in the market. The gold could surpass the given resistance and reach the upper boundary of the falling wedge pattern at 1,290.00.
On the other hand, the price for gold could trade sideways between the given resistance and support. From a theoretical point of view, it is unlikely, that bears could prevail in the market, as the pair is trading within the short-term ascending channel.
Hourly Chart
On the daily candle chart the commodity price has once more approached the resistance of the 1,290.00 level. Currently the daily SMAs are no longer strengthening this level.The 100-hour SMA has moved up to the 1,295.70 level, and the 55-day simple moving average was approaching it from the above at 1,296.90
Daily Chart
Short sentiment remains intact
Since Wednesday, 64% of open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current price 66% of pending orders were set to sell the metal.