The support found in the 1,400.00 level was enough to cause a surge up to the 1,430.00 level.
On Thursday, the yellow metal's price was declining after touching the 1,430.00 mark.
By the middle of the day's London trading session, the commodity price was finding support in the 1,420.00 level.
Gold this week was affected only by one macroeconomic data release.
Namely, the US Retail Sales and Core Retail Sales that were published on Tuesday at 12:30 GMT
Meanwhile, note that the next week will be reviewed on Friday at 12:00 GMT in an Economic Calendar Overview.
XAU/USD short-term forecast
During the previous trading session, the XAU/USD exchange rate skyrocketed to the upper boundary of the short-term ascending channel at 1,431.00. During today's morning, the rate reversed south.
From a theoretical point of view, it is expected, that the price for gold could continue to decline. A possible downside target is the support cluster formed by the 55-, 100– and 200-hour SMAs, currently located in the 1,408.16/1,413.12 range.
On the other hand, the exchange rate could reverse north to re-test the upper channel line. It is unlikely, that the rate could exceed the 1,435.00 mark due to the upper boundary of the long-term ascending channel.
Hourly Chart
On the daily chart, it can be observed that the metal still remains below the August 2013 high level, which stopped the metal's massive June surge.
Daily Chart
Short sentiment remains unchanged
Since the middle of Wednesday, 62% of open gold position volume on the Swiss Foreign Exchange was short.
On Thursday, in the 1000 base point range around the current metal's price the orders were long - 69% of orders were set to buy. Previously, 66% of orders were set to buy.