The price for gold could not surpass the psychological level at the 1,425.00 mark.
Note, that the XAU/USD exchange rate is supported by the 55- and 100-hour SMAs, thus, some upside potential could prevail in the market in the nearest future.
Bureau of Economic Analysis released the US Final GDP data, which came out in line with expectations of 3.1%.
According to the official release: "The first-quarter percent change in real GDP was the same as previously estimated, reflecting upward revisions to nonresidential fixed investment, exports, state and local government spending, and residential fixed investment that were offset by downward revisions to PCE and inventory investment, and an upward revision to imports."
Economic Calendar Analysis
It is likely, that on Friday, the market will focus on G20 summit.
The full review of all of the notable events is available in video on the Dukascopy Webinars YouTube channel.
XAU/USD short-term forecast
Yesterday, the price for gold tested the psychological level at 1,425.00. During Friday's morning, the XAU/USD exchange rate was testing the support level formed by the 55– and 100-hour SMAs, located circa 1,410.00.
If the given support holds, it is expected, that gold could remain its appreciation against the Greenback. A potential upside target is the upper boundary of the ling-term ascending channel at 1,435.00.
On the other hand, the exchange rate could trade sideways, trying to surpass the given moving averages.
It is unlikely, that the price for gold could tumble lower than 1,390.29 mark due to the support of the 200-hour SMA.
Hourly Chart
On the daily chart, it can be observed that the decision to mark historical high levels was a correct one.
Namely, one can observe that the zone surrounding the August 2013 high level provided resistance to the commodity price.
Daily Chart
Traders go short on gold
On Friday, 54% of all open positions on Swiss Foreign Exchange were short.
Meanwhile, in the 1000 base point range around the current metal's price the orders had become neutral on Thursday. 53% of orders were set to sell and 47% of orders were to buy.
On Friday, 59% of orders were set to buy.