The Iranian government fired rockets at US bases in Iraq. The news caused a spike of gold prices. However, as soon as it was revealed that there were no casualties, gold began to decline.
By the middle of London's trading session, the rate had retreated back below the 1,580.00 level. Meanwhile, the move was consistent with the technical chart from more than one aspect. Economic Calendar Analysis
On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused a move on the EUR/USD above ten pips. It is the criteria whether to take or not take into account a data release.
The week will end with the three US employment data sets being published at 13:30 GMT.
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
During Wednesday's London noon trading hours, the yellow metal was testing the technical support of the 55-hour simple moving average near 1,573.00. In addition, the SMA had the close by support of the monthly R2 at 1,570.61.
In the meantime, the support levels near 1,570.00 were being approached by the 100-hour simple moving average, which was located at 1,560.00.
In regards to the near term future, the rate could find support in the 55-hour SMA and the monthly R2 and again reach for the resistance of the 1,600.00 level. On the other hand, the rate might pass these levels and reach for the 100-hour SMA.
Hourly Chart
On the daily candle chart, the price is surging after bouncing off the support of the channel up pattern that captures the metal's appreciation that has been occurring since the middle of 2018.
Currently, the surge appears to have occurred too sharply. In theory, the metal is overbought and should retrace back down or trade sideways to consolidate the gains.
Daily Chart
Traders short the decline
On Wednesday, on the Swiss Foreign Exchange 56% of open gold position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were to buy– 77% of orders were to buy and 23% to sell.
Previously, the orders were 50%/50% balanced.