The resistance line of the 2019 and 2020 high levels has been broken, the yellow metal's price has reached a new high level. Namely, the surge was stopped by the resistance of the 1,815.00 price level.
On Thursday, the commodity price was trading sideways, as it consolidated its gains and awaited for the support of the hourly simple moving averages.
Economic Calendar Analysis
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
XAU/USD short-term forecast
It is likely that yellow metal could face the resistance formed by the monthly R1 at 1,821.43. Thus, a reversal south could occur in the nearest future. In this case the rate could gain support from the 55-, 100– and 200-hour SMAs in the 1,781.00/1,799.00 area.
Meanwhile, note that the exchange rate could gain support at the 1,805.00 level. Thus, it is likely that gold could trade sideways against the Greenback in the short term.
Hourly Chart
On the daily candle chart, the metal has passed the trend line that was drawn by connecting the 2019 and 2020 high levels. Take into account that the resistance line is drawn by not using the actual high levels, but the closing and open prices of the daily candle charts.
Due to that reason, another trend line of the absolute highs has been added. The zone between the two lines can be seen as a resistance zone.
Daily Candle Chart
Short sentiment grows
On Thursday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 64% was short.
On Wednesday, 66% of volume was in short positions
Meanwhile, in the 1000-pip range around the current metal's price the orders were 67% to buy.
Previously, the orders were 75% to buy.