The surge of Gold continues. The 1,340.00 level was reached by the middle of Wednesday's London session.
Moreover, the metal has not technical resistance as high as the 1,360 level. In addition, the 55-hour SMA is rather close by, indicating that the metal is not overbought.
On Thursday, all attention will be on the European Central Bank. At 11:45 GMT the Monetary Policy Statement will be published. On the release the EUR/USD has moved from 10 to 35 pips.
The event will be followed by the ECB press conference at 12:30 GMT. During the questions and answers session at the end of it the EUR is bound to make sharp moves.
At the same time the Canadian Trade Balance will be published. This event has caused moves from ten to sixty pips.
The week will end with the Canadian and US employment data being published at 12:30 GMT. This event consists of five different data sets being released.
For more details watch the Economic Calendar Overview. Moreover, feel free to ask questions for details.
XAU/USD short-term forecast
By the time the daily review was finished the daily hourly candle chart's forecasts had become reality. The metal reached 1,340.00 before 12:00 GMT.
The rate was expected to test the psychological resistances of 1,340.00 and 1,350.00 one by one until it reaches the weekly R3 at 1,360.00.
Most likely it will be pushed up gradually, as the support of the 55-hour SMA pushes the metal slowly up at the moments that it does not indicate that the metal is overbought.
Hourly Chart
On the daily candle chart it can be observed that the rate broke the resistance of the both long term patterns.Most likely after the fundamental moves end a full review of the charts will be conducted.
Daily Chart
Traders remain short
Despite the continuation of the surge of the metal's price, trader remain short on it, as on the Swiss Foreign Exchange 65% of open gold position volume was in short positions on Wednesday.
Meanwhile, in the 1000 base point range around the current price 63% of pending orders were set to sell the metal.
Despite the surge, traders were mostly shorting gold and suffering losses. Moreover, they were ready to open additional short positions.