Gold managed to pass the resistance of the 1,915.00 level on Thursday morning. The rate eventually reached the monthly pivot point at 1,928.54, which paused its decline at mid-Thursday.
Near term future forecasts were based upon what would happen at the pivot point.
Economic Calendar Analysis
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
In the case of the commodity price passing the resistance of the pivot point at 1,928.54, the price should aim at the resistance of the pivot point at 1,944.78. However, round price levels like the 1,930.00, 1,935.00 and 1,940.00 could provide short term resistance.
On the other hand, if the pivot point holds, the rate could retrace back to the support of the 1,920.00 level, the pivot point at 1,917.50 and 1,915.00.
Hourly Chart
On the daily candle chart, the yellow metal has broken the combined resistance of the 55-day SMA and the 38.20% Fibonacci retracement level at 1,916.80.
Next resistance on the daily candle chart was the 50.00% Fibonacci retracement level at 1,947.16.
Daily Candle Chart
Traders are long on Gold
Since Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 64% was long.
By the middle of Thursday's GMT trading hours, the sentiment was 59% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 69% to sell the metal.