The metal failed to pass the resistance of the 1,480.00 level on Thursday. By the middle of Friday's trading, the price had declined and found support in the 100-hour SMA at 1,471.30.
In general, the price was expected to get squeezed in between the resistance of the 55-hour SMA and a pivot point near 1,475.50 and the support of the mentioned 100-hour SMA.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
XAU/USD short-term forecast
Given that yellow metal is supported by the 100-hour moving average at 1,471.91, it is likely that some upside potential could prevail in the market. In this case the rate could re-test the upper boundary of the medium-term ascending channel.
However, note that the exchange rate is pressured by the 55-hour moving average. Thus, gold could consolidate against the Greenback in the short term. Also, it is unlikely that some downside potential could prevail, and the price for gold could drop lower than the 200-hour SMA at 1,464.80.
Hourly Chart
On the daily candle chart, the commodity price has reached the technical resistance of daily simple moving averages. The 55 and 100-day SMAs were located near 1,487.00.
These levels need to be passed for the price to reach for the 1,500.00 level.
Daily Chart
Traders remain long on gold
Since Thursday, on the Swiss Foreign Exchange 56% of open gold position volume was in long positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were set to buy– 58% of orders were to buy and 42% to sell.
Previously, the orders were 57% to sell.