On Thursday, the yellow metal's price touched the 1,660.00 level before retracing back to the 1,640.00 mark.
In the meantime, it could be observed that the rate was booking higher highs and lower lows.
Economic Calendar Analysis
No more relevant data for the pair is scheduled to be released during this week.
However, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
After touching the 1,625.00 level for a second time on Wednesday, on Thursday, the commodity returned to trade near the 1,650.00 mark.
In regards to the near term future, the metal was expected to end trading in this week's range and surge, as on Thursday, the resistance of the 55-hour simple moving average was broken. In addition, the 200-hour SMA had reached the 1,625.00 level, removing a part of the overbought pressure.
On the other hand, the bullion could trade sideways until the 200-hour SMA reaches the 1,650.00 level.
Hourly Chart
On the daily candle chart, the pierced channel up pattern continues to hold. It can be deducted from the recent surge that the pattern could be adjusted to the high levels of January and February.
In the meantime, in accordance with the pattern the commodity price should fluctuate sideways until it reaches the lower trend line of the pattern. In addition, as the pair trades sideways, the 55-day simple moving average could catch up to it and provide additional technical support.
Daily Chart
Traders are short on gold
Since Wednesday, the Swiss Foreign Exchange gold sentiment was 64% short. Namely, 64% of open position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 82% of orders were to buy and 18% to sell.
Previously, the orders were 71% to buy and 29% to sell.