On Thursday, gold reached the targeted S1 of the simple pivot points at the 1,475.18 level. Moreover, the level was also strengthened by the 200-hour simple moving average, which was also expected.
This resulted in a decline, which by the middle of Friday's trading session had bounced off the support levels near the 1,462.00 level.
In regards to the near term future, the pair had two scenarios.
Economic Calendar Analysis
On Friday, the US Retail Sales data sets will be out at 13:30 GMT.
Next week, the GBP/USD is expected to be impacted by one event.
On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
XAU/USD short-term forecast
On Thursday, the XAU/USD exchange rate tried to surpass the resistance level formed by the monthly S1 and the 200-hour SMA at 1,475.18. During today's morning, the rate was testing the support formed by the 55– and 100-hour SMAs, as well the Fibo 23.60% at 1,462.89.
If the given support and resistance level holds, it is likely that yellow metal could trade sideways against the US Dollar within the following trading session.
If the given support does not hold, it is likely that the price for gold could target the psychological level at 1,450.00.
Hourly Chart
On the daily candle chart, take into account that the rate has close by the resistance of the 55-day simple moving average at 1,496.96 and the 100-day SMA at 1,479.12.
Daily Chart
Traders remain long on gold
Since Wednesday, 57% of volume was in long positions. Namely, the SWFX sentiment was bullish.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 72% of orders were to buy and 28% to sell.
Previously, the orders were 54% to buy.