Gold drops to 1,500.00

Source: Dukascopy Bank SA

The 1,535.00 level was strong enough to eventually cause a decline. As soon as the decline reached below the 1,530.00 mark, it increased and dropped down to almost touch 1.500.00.

On Thursday, the metal's price was trading sideways between 1,505.00 and 1,510.00 levels.

Economic Calendar Analysis



On Thursday, the US Final GDP will be published at 12:30 GMT. This event could cause a minor move.

The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.

However, note that during the last six months the markets did not react to the Durable Goods Orders. For example the EUR/USD moved less than 10 pips during the timeframe of ten minutes around the data being released.

XAU/USD short-term forecast

During Thursday morning, the rate was testing the resistance formed by the 200-hour SMA at 1,508.78.

If the given moving average does not hold, it is likely that yellow metal could extend gains against the US Dollar within the following trading session. However, it is unlikely that the rate could exceed the 1,520.00 level due to the resistance formed by the 55– and 100-hour SMAs.

If the given resistance level holds, it is likely that the price for gold could continue to go downwards. Note that the nearest support level—the monthly PP, is located at the 1,492.35 mark.

Hourly Chart



On the daily candle chart, the price for gold is once more trading below the lower trend line of the channel up pattern, which guided the metal's summer surge.

Meanwhile, the support of the 55-day simple moving average was approaching the commodity price from below, near the 1,485.00 level.

Daily Chart


Swiss traders remain short

Despite the drop of the metal's price, trader open gold position volume on the Swiss Foreign Exchange almost hadn't changed.

Namely, instead of 58% of volume being in short position on Wednesday, 55% was in shorts on Thursday.

Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish– 62% of orders were to buy and 38% to sell.

Previously, the orders were 79% to buy.

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