Since Thursday, the XAU/USD has been consolidating in the 1,935.00 area.
Given that yellow metal is pressured by the 55- and 200-hour moving averages, it is likely that some downside potential could prevail in the market.
Economic Calendar Analysis
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Next week, there are only couple events that could impact the price for gold.
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate traded sideways in the 1,935.00 area. During Friday morning, the rate maintained its consolidation.
Given that yellow metal is pressured by the 55– and 200-hour moving averages near 1,945.00, it is likely that some downside potential could prevail in the market.
Meanwhile, it is unlikely that bulls could prevail in the market in the nearest future, and the price for gold could exceed the monthly PP located at the 1,969.20 mark.
Hourly Chart
On the daily candle chart, the price could find support in the lower trend line of the channel up pattern, which has guided the surge that has been occurring since late March.
Daily Candle Chart
Traders remain long
On Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 57% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 84% to buy.