On Wednesday gold prices remained in the previous range. It traded between 1,310.00 and 1,315.00 levels.
In general, the previous forecast remains in force. Although, note that the 200-hour simple moving average has approached the commodity from below.
The price of gold is unlikely going to be influenced by macroeconomic data releases this week. However, traders might take advantage of two notable events.
The major event of the week will be the Bank of England rate announcement on Thursday. The rate announcement and the results of the central bank's monetary policy vote will be published at 12:00 GMT.
Another notable event during this week will be the Canadian Employment data release on Friday at 13:30 GMT.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more detailed info and a chance to ask questions watch the weekly calendar analysis by clicking on the link below.
XAU/USD short term forecast
During Wednesday's morning hours, the yellow metal was located between the 55-hour and the 100-hour simple moving averages at the 1,314.09 level.
In regards to the near-term future, it is expected that the 100-hour simple moving average will resist the gold for the rest of the day to pressure the yellow metal to trade between the 55-hour and the 200-hour SMAs at the 1,312.00 level.
On the other hand, the yellow metal could trade sideways between the 100-hour and the 55-hour simple moving averages to stay at the 1,315.00 level for the rest of the trading session.
Hourly Chart
On the daily chart traders can observe the breaking of dominant patterns. The break was caused by fundamental changes in the US Dollar's value.Namely, last week the Federal Reserve announced that the US monetary policy will not be as tight as previously expected.
This revealed that the USD will be more available in the financial markets, and it caused a fall of its value. Due to that reason gold prices surged above the resistance levels.
Daily Chart
Large short sentiment remains intact
Traders on Wednesday were 70% short. Some had closed their short positions during the last 24 hours. Most likely they were small move shorters.
In the meantime, trader pending orders in the 1000-base point range were once more set to buy. 58% of orders were set to buy on Wednesday.
Traders remain short on the metal. However, the appearance of buy orders indicates that closing of the short positions in the near future is highly likely.