The yellow metal's price bounced off the supporting trend line of a rising wedge pattern.
By the middle of Friday's London trading hours, the pair had broken the resistance of the 200-hour SMA below 1,730.00 and reached the 55 and 100-hour SMAs near 1,740.00.
Next week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reversed north from the lower boundary of the rising wedge pattern. During Friday morning, the rate was testing the resistance formed by the 55– and 100-hour SMAs near 1,740.00.
From a theoretical perspective, it is likely that some upside potential could prevail in the market, as the rate should target the upper wedge line.
However, if the given resistance holds, it is likely that the rate could re-test the lower pattern line. If the given wedge holds, it is likely that the rate could trade along its lower line in the nearest future.
Hourly Chart
On the daily candle chart, it was spotted on Wednesday that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line. This trend line provided resistance to the metal on Monday.
Daily Candle
Traders are neutral on gold
Since Tuesday, the position volume was balanced. 50% of volume was short and the other 50% were long.
On Thursday, the sentiment shortly became 51% long.