On Friday, gold reconfirmed the support of the large scale ascending channel that can be seen on the daily candle chart.
In regards to the short term, the commodity price was about to test resistance levels at the 1,500.00 level.
This week, there will be one data release, which might impact the price of gold through a value adjustment of the USD.
On Wednesday, at 12:30 GMT the US Retail Sales and US Core Retail Sales are scheduled to be released.
Meanwhile, take into account that next week there will be other events, which are expected to cause larger reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
XAU/USD short-term forecast
On Monday, the commodity price was testing the resistance of the 55, 100 and 200-hour simple moving averages and a monthly pivot point at 1,498.30.
If these levels get broken, the price would next test the resistance of the 1,510.00 mark.
On the other hand, in the case of a decline no technical levels would provide support. During the last couple of week, support is provided by round psychological price levels.
Hourly Chart
On the daily candle chart, the low level of October 1 has provided a reference point for charting patterns. A confirmed large scale ascending pattern has been spotted and added to the chart by Dukascopy Analytics.
It can be seen that the September surge occurred in the borders of the pattern until it met with its resistance line.
Meanwhile, in the borders of the larger pattern there exists a smaller channel down pattern. It represents the commodity price's consolidation in the borders of the larger pattern.
Daily Chart
Traders become neutral
On Friday, 53% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bearish – 71% of orders were to sell and 29% to buy.
The orders were 51% to buy on Friday.