At mid-day on Thursday, the yellow metal's price found support in the 200-hour simple moving average and the 1,720.00 level. Afterwards, a surge followed.
By the start of Friday's European trading hours, the metal had passed the resistance of the 55 and 100-hour SMAs and was testing the 1,740.00 mark.
On Wednesday, at 13:45 GMT the US Services and Manufacturing PMIS could cause moves.
On Thursday, the US Final GDP is set to be released at 12:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the 1,740.00 level fails to provide resistance, the bullion should next test the 1,750.00 mark. In the case of the 1,750.00 not providing resistance, other round price levels could stop a surge.
On the other hand, a bounce off from any resistance level would most likely look for support in the 55 and 100-hour simple moving averages and the 1,730.00 level, which is strengthened by the 38.20% Fibonacci retracement level. Below these levels, the 200-hour SMA and the 1,720.00 mark could once again provide support.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
In addition, note that prior to the Fed announcement volatility was almost gone. In theory, a lack of volatility eventually results in a sharp move.
Daily Candle Chart
Long sentiment remains intact
On Thursday, the sentiment on the Swiss Foreign Exchange was bullish, as 70% of open position volume was long.
On Friday, the sentiment was 68% long.
Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 63% to buy the metal.