Gold declines despite breaking resistance

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Despite shortly piercing the upper trend line of the channel down pattern, which has guided gold since last week, the metal's price declined at mid-day on Wednesday. By the middle of Thursday's trading, the yellow metal had reached below the 50, 100 and 200-hour simple moving averages and the lower trend line of a minor size channel up pattern.

Economic Calendar Analysis



On Thursday, a minor USD move could occur due to the weekly US Unemployment claims release at 13:30 GMT.

On Friday, the value of the US Dollar is most likely going to adjust to the publication of the US Consumer Price Index and Core Consumer Price Index changes at 13:30 GMT.

Click on the link below to find out more about data releases of this and other currency exchange rates.

XAU/USD short-term forecast

In the case that the decline of the price continues, the commodity might reach the December low level zone at 1,760.15/1,763.60. On the other hand, the bullion might recover and test the 50, 100 and 200-hour simple moving averages near 1,782.00/1,785.00, before reaching the upper trend line of the channel down pattern.

Meanwhile, take into account that round price levels are capable of providing both support and resistance.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal has passed the trend line, which connects the August, September and November low levels.

Meanwhile, the 50, 100 and 200-day simple moving averages were at the trend line. It was spotted on December 8 that the SMAs were acting as resistance.

Daily Candle Chart


Long sentiment changes

Since Monday, the sentiment on the Swiss Foreign Exchange was 62% bullish, as 62% of open position volume was in long positions.

On Thursday, the sentiment was 63% long.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 73% to buy the precious metal.

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