On Friday, the United States Bureau of Economic Analysis will publish the Core Personal Consumption Expenditure Price Index at 13:30 GMT. The change of the index shows how inflation impacts consumers. It is different from the CPI with the fact that it measures only goods that are consumed by individuals.
XAU/USD short-term forecast
A move above 2,047.75 is expected to immediately face resistance in the 2,050.00 mark. Higher above, note the marked levels that impacted the commodity during its recent surge to all-time-high levels.
However, a potential decline would look for support in the 2,027.20/2,030.00 range. Further below, note the 200-hour SMA near 2,015.00. Below the moving average take into account the 2,007.45/2,012.75 zone. Meanwhile, the 50 and 100-hour SMAs have been failing to impact the commodity.
XAU/USD daily charts review
On the daily candle chart, support was found in the 50-day simple moving average near 1,980.00. The recent move appears to be concise with the support holding on, but actually the move was not caused by the SMA. The reason was the Federal Reserve event.In general, additional resistance could be found in the 2021 and 2022 high level range at 2,065.30/2,082.80.
On the other hand below the 50-day SMA, the 100 and 200-day SMAs are strengthening the 1,950.00 level.
Daily Candle Chart
Gold traders are short
On Thursday, 58% were short, as that proportion of open position volume was in short positions. In the meantime, pending orders in the 1000- pip range around the current price were 62% to buy the metal.
At the start of Wednesday's Asian trading, the positions were 56% short and orders were 55% to buy.