On Thursday, US President Donald Trump tweeted on US-China trade deal, which caused a jump of the value of the US Dollar. As a result of this event, the price of gold first jumped above 1,485.00 and afterwards plummeted to 1,465.00.
In the near term future, the price should consolidate, as the news are taken in by the market.
The week is set to end with the US Retail Sales data sets on Friday at 13:30 GMT.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
XAU/USD short-term forecast
In the aftermath of the increased volatility, the yellow metal's price met with the resistance of the 55 and 200-hour SMAs. If these SMAs fail to keep the price down, the metal should test the 1,475.50 level, where a monthly pivot point was located at.
On the other hand, the SMAs could force the pair down. In that case it would look for support in the 55-hour SMA and the 1,465.00 level, which stopped the fundamental Trump drop.
Hourly Chart
On the daily candle chart, the commodity price was pushed down by the resistance of the 55 and 100-day simple moving averages.
In the meantime, the rate has almost reached the lower trend line of a massively large channel up pattern. The pattern represents the surge that has occurred since September 2018.
Daily Chart
Long sentiment decreases
Since last Thursday, on the Swiss Foreign Exchange 56% of open gold position volume was in long positions.
The sentiment decreased to 54% long during this Thursday's trading.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders had shifted– 68% of orders were to buy and 32% to sell.
Previously, 59% of orders were to sell.