Gold jumped to 1,735.00

Source: Dukascopy Bank SA

The XAU/USD exchange rate breached the ascending triangle pattern and jumped to the 1,735.00 level.

Note that yellow metal remains to be under pressure of the resistance level at 1,740.00.

Economic Calendar Analysis



Today, the US Retail Sales is being released at 12:30 GMT.

Next week, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT.


XAU/USD short-term forecast

On Thursday, the XAU/USD exchange rate breached the ascending triangle pattern north. During today's morning, the rate was trading near the resistance level at 1,740.00.

If the given resistance level holds, it is likely that a reversal south could occur, and yellow metal could depreciate against the Greenback.

Meanwhile, it is unlikely that the rate could decline below the 1,707.00/1,719.00 range due to the support formed by the 55-, 100– and 200-hour SMAs.

If the given resistance does not hold, it is likely that gold could appreciate against the US Dollar in the short run.

Hourly Chart



On the daily candle chart, the metal is overbought, as its price is far above the daily simple moving averages. The most close by 55-day SMA was located at the 1,650.00 mark.

Daily Candle


Traders are neutral on gold

On Friday, the Swiss Foreign Exchange sentiment has been 52% long.

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