Gold drops on US data

Source: Dukascopy Bank SA

The yellow metal plummeted on Friday, as good US employment data caused a surge of the US Dollar's value.

On Monday, the metal's price had slightly recovered and reached the resistance of the 200-hour simple moving average near 1,465.00.

Economic Calendar Analysis

This week there are a couple of events that could impact the rate.

On Wednesday, at 13:30 GMT the US CPI and Core CPI are scheduled to be published.

On the same day, the US Federal Reserve would announce its interest rate at 19:00 GMT.

The week is set to end with the US Retail Sales data sets on Friday 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

On Friday, the XAU/USD exchange rate dropped to the 1,460.00 level. During today's morning, the rate was testing the Fibo 23.60% at 1,462.89.

Note that yellow metal is supported by the 200-hour moving average, currently located at 1,465.51. Thus, it is likely that some downside potential could prevail in the market. In this case the rate could re-test the lower boundary of the medium-term ascending channel located circa 1,457.60.

If the given channel holds, a reversal north could follow. But it is unlikely that the rate could exceed the given moving average. Otherwise, a breakout south could occur.

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.

Daily Chart


Traders remain long

Since Thursday, on the Swiss Foreign Exchange 56% 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 almost neutral– 48% of orders were to buy and 52% to sell.

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