The XAU/USD exchange rate touched the 1,895.00 level.
In general, the metal's price was expected to test the resistance of the 1,900.00 level, which could force the rate into a consolidation by either trading sideways or retracing back down.
There are no more notable events for the metal this week. However, during Thursday's trading hours the next week's event review is set to be published. The article will be available in the Fundamental Analysis section.
The week of Christmas is set to have an early market closing on Thursday in many countries and reduced liquidity due to people being on holidays. However, there are still four noteworthy data sets being released in the days before people are off from work.
All of the data releases of the week are scheduled to occur on 13:30 GMT.
Namely, on Tuesday, the US Final GDP could cause volatility. On Wednesday, Canadian statisticians will publish their monthly GDP data.
Last but not least, on Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released.
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
Yesterday, the XAU/USD exchange rate touched the 1,895.00 level.
It is likely that yellow metal could gain support from the 55-hour moving average near 1,870.00 and extend gains against the US Dollar in the short term. A possible upside target is the 1,900.00/1,920.00 range.
In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below 1,850.00/1,860.00 due to the support area formed by the 100– and 200-hour SMAs, as well the Fibo 23.60%.
Hourly Chart
On the daily candle chart, the yellow metal has passed the resistance of the 55-day simple moving average, which kept the bullion down since early December. Next resistance on the daily candle chart was the 100-day SMA, which was located at the 1,906.25 level. This SMA could move lower and strengthen the 1,900.00 mark.
In the meantime, a new channel pattern has been added to the chart. Namely, there is a channel up pattern that captures the metal's December recovery.
Daily Candle Chart
Traders remain long
On Friday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 63% was long.
On Thursday, the sentiment was 62% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 79% to buy the metal.