On Friday, the yellow metal's price was recovering after the Thursday decline. By the middle of the day's London trading hours, the metal had tested the resistance of the 1,475.50 level.
US President Announces Trade Deal
On Thursday, December 12, gold depreciated 1.22% or 1786 pips against the US Dollar.
The drop was driven by an announcement made by the US President Donald Trump via Twitter. Trump wrote that the US and China were getting "very close" to reach agreement on trade tensions.
The US-China trade war began in January 2018. Currently, the US applied tariffs on the Chinese goods worth $550B. China responded with tariffs on $185B worth of the US products.
Economic Calendar Analysis
Next week, this pair could be impacted only by one data release. On Friday, the US Final GDP is set to be published at 13:30 GMT.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
XAU/USD short-term forecast
Note that yellow metal is supported by the 55-, 100– and 200-hour moving averages, currently located circa 1,467.00. Thus, it is likely that some upside potential could prevail in the market.
However, note that the exchange rate would have to surpass the monthly PP located at the 1,475.51 mark. If the given level holds, it is likely that gold could consolidate against the Greenback in the short term.
Hourly Chart
On the daily candle chart, the commodity price was pushed down by the resistance of the 55 and 100-day simple moving averages.
In the meantime, the rate has almost reached the lower trend line of a massively large channel up pattern. The pattern represents the surge that has occurred since September 2018.
Daily Chart
Sentiment remains unchanged
Since Thursday, on the Swiss Foreign Exchange 54% 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– 57% of orders were to buy and 43% to sell.
Previously, 68% of orders were to buy.