Gold could reach 2020 high

Source: Dukascopy Bank SA

During the late hours of Wednesday's trading, the yellow metal's price managed to pass the resistance of the 1,700.00 level and the pivot point at 1,704.29.

This event resulted in a surge, which by the middle of Thursday's trading had almost reached the 1,730.00 level.

Economic Calendar Analysis



On Thursday, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.

Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created large moves.

Last but not least, a notable reaction could be created by the US Durable Goods orders on Friday at 12:30 GMT.

XAU/USD short-term forecast

By mid-day on Thursday, the metal's price faced only the psychological resistance of the round 1,730.00 price level. If this level would get passed, the bullion could reach for the March high level of 1,740.00.

However, the 1,730.00 could force the price to retrace back down. In this scenario, the bullion would look for support in the 1,700.00 level. The 1,700.00 level was strengthened by the monthly R1 pivot point and the 200-hour SMA at 1,704.29. In addition, the 55 and 100-hour SMAs were located at 1,697.00 and 1,693.55.

Hourly Chart



On the Daily candle chart once can observe that the round price levels have been forcing the rate into changing its direction. Take a look at the 1,750.00, 1,700.00 and 1,650.00 levels, as they provided both support and resistance since March.

Meanwhile, historical high levels have been marked on the daily candle chart.

Daily Candle


Sentiment remains unchanged

Since Tuesday, the Swiss Foreign Exchange sentiment was 54% short. Namely, 54% of open gold position volume was in short positions.

On Thursday, the sentiment slightly decreased, as 53% of volume was short. a

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.