On Thursday, the yellow metal's price plummeted down to the monthly pivot point at 1,607.95.
Future forecasts were based upon what would happen at this level.
The week's historical 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
In the near term future, the metal's price had two possible scenarios, as it stood at the support of the monthly simple pivot point at 1,670.95.
In the case of the pivot point failing to provide support, the metal would immediately look for support in the 1,600.00 level. If this level fails to hold, there is no technical resistance as low as the 1,526.37 level.
On the other hand, the recent move could consolidate. In this case the bullion would trade between the monthly pivot point and the hourly simple moving averages, which were located above the 1,645.00 level.
Hourly Chart
On the daily candle chart, the rate has dropped down to the combination of three support levels. The lower trend line of a channel up pattern, the monthly PP and the weekly S1 PP were located just above the 1,600.00 level.
In accordance with the pattern, the pair should find support and surge.
Daily Chart
Short sentiment declines
Since Tuesday, the Swiss Foreign Exchange gold sentiment was 65% short. Namely, 65% of open position volume was in short positions.
On Thursday, the sentiment changed to being 62% short. It can be assumed that some traders took profits during the drop of the price.