Gold continues to extend gains

Source: Dukascopy Bank SA

The XAU/USD exchange rate raised to the monthly R1 at 2,058.09.

If the given resistance holds, it is likely that a reversal south could occur.

Economic Calendar Analysis



The first week of August is going to be relatively busy on the economic calendar.

On Thursday, the US Unemployment Claims data is going to be published at 12:30 GMT.

On Friday, the US Employment data set release could be in the spotlight. The release is scheduled to 12:30 GMT.

Click on the link below to find out more about the data releases.

XAU/USD short-term forecast

Yesterday, the XAU/USD exchange rate raised to the resistance level—the monthly R1 at 2,056.09. During Thursday morning, the rate was testing the given resistance.

If the predetermined resistance holds, it is likely that a reversal south could occur. In this case it is unlikely that the price for gold could decline below 1,997.50/2,017.50 area due to the support formed by the 55– and 100-hour SMAs.

Otherwise, it is likely that yellow metal could continue to extend gains against the US Dollar within the following trading session.

Hourly Chart



On the daily candle chart, the metal has reached a new historical high level, as the 1,912.40 level was broken.

Meanwhile, note that gold is trading far above the 55-, 100- and 200-day moving averages, thus, it is likely that yellow metal is overbought.

Daily Candle Chart


Traders remain short

On Thursday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 58% was short.

Meanwhile, in the 1000-pip range around the metal's price the orders were 64% to buy.

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