On Thursday, the price bounced off the combination of the 2,040.00 and the 100-hour simple moving average. The subsequent decline was slowed down by the 50-hour simple moving average, but the SMA eventually failed and a decline continued. Economic Calendar Analysis
On Friday, watch out for the US employment data release. The release is bound to impact the financial markets through the value of the US Dollar. The publication is set to consist of the Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate.
XAU/USD short-term forecast
The decline of the commodity price could look for support in the low level range at 2,009.85/2,012.50. Below this range, note that the 2,000.00 mark might turn into support.
On the other hand, a recovery of the metal would have to break through the moving averages and the 2,040.00 level, before approaching the 2,050.00 level's resistance.
XAU/USD daily charts review
On the daily candle chart, the metal pierced the upper trend line of the channel up pattern that has guided it up since the start of October. However, most importantly the price broke the high level range of 2020, 2022 and 2023 at 2,065.30/2,082.80. Namely, the price has not been this high.In regards to the future, note the prior resistance range at 2,005.15/2,009.70 that could turn into support. In addition, the lower trend line of the channel pattern should act as support.
Daily Candle Chart
Gold traders are still shorting
On Thursday, 63% of volume was in short positions. Pending orders in the 1000 point range around the current price were 88% to sell.
On Wednesday, traders were also 63% short, but orders were 54% to sell.