The commodity price broke the support of the medium scale pattern. It occurred in a sharp move, which gained momentum and reached as low as the 1,460.00 level.
On Friday, the rate was consolidating in the aftermath of the previous move down.
Economic Calendar Analysis
There are no more events scheduled for this week, which could impact gold prices through the value of the US Dollar.
Next week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
XAU/USD short-term forecast
On Thursday, the XAU/USD exchange rate breached the medium-term ascending channel south. During today's morning, the rate was trading at the 1,460.00 level.
Given that yellow metal is pressured by the 55-, 100- and 200-hour moving averages, it is likely that some downside potential could prevail in the market. In this case, the price for gold could surpass the 1,460.00 level.
However, note that the exchange rate could gain support of the Fibonacci 23.60% retracement at 1,462.89. If the given level holds, gold could consolidate against the Greenback in the short term.
Hourly Chart
On the daily candle chart, gold has also passed the support of the 100-day simple moving average.
Meanwhile, the large scale chart has received an update. Technical channels have been drawn.
Daily Chart
Traders become bullish
Since Wednesday, 50% of volume was in short and long positions. Namely, the SWFX sentiment was neutral.
The sentiment changed on Friday, as 54% of open position volume was in long positions.
On Friday, in the 1000 base point range around the current metal's price the pending orders were bearish– 60% of orders were to sell and 40% to buy.
Previously, the orders were 56% bullish.