Gold approaches resistance zones

Source: Dukascopy Bank SA
The price for gold has surged due to the comments made by the head of the US Federal Reserve Jerome Powell. Namely, the policymaker stated that the US Fed might slow down their restrictive monetary policy implementation. Due to that reason the US Dollar plummeted against other assets.

Economic Calendar Analysis



On Thursday, note the Core PCE Price Index release at 13:30 GMT. The US monetary policymakers watch this index as a measure of inflation, not the Consumer Price Index.

Afterwards, the US ISM Manufacturing PMI could impact the US Dollar's value at 15:00 GMT.

The week is set to end with the release of the United States employment data at 13:30 GMT. The data release consists of the US Average Hourly Earnings changes, Non-Farm Employment Change and Unemployment Rate.

XAU/USD short-term forecast

On the gold charts it resulted in a surge up to the 1,783.50 level. Meanwhile, on Thursday, it was spotted that the price was finding support in the 1,775.00 level.

A continuation of the ongoing surge of the commodity price would have to pass the November high level zone at 1,785.20/1,786.30, before approaching the 1,800.00 mark. moreover, the 1,790.00 and 1,795.00 levels could act as resistance.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal has passed above the resistance of the 200-day simple moving average and is approaching the 1,787.05/1,808.15 zone. The zone acted a support in the first half of 2022 and as resistance in August.

Daily Candle Chart


Traders increase long positions

On Thursday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 58% to buy the precious metal.

On Wednesday, the open positions were 61% long and orders were 58% to buy.

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