On Thursday, the XAU/USD exchange rate tested the upper boundary of the falling wedge pattern.
From a theoretical point of view, some downside potential could prevail within the following trading hours.
This week there are no events left that could affect the XAU/USD pair.
Next week there will be one data release, which might impact the price of gold through a value adjustment of the USD.
On Thursday, October 24, the US Durable Goods Orders data will be released at 12:30 GMT.
XAU/USD short-term forecast
On Wednesday, the XAU/USD exchange rate increased to the upper boundary of the falling wedge pattern at 1,492.00. During today's morning, the rate was trading near the given line.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case, the price for gold could target the psychological level at 1,478.00/1,480.00.
However, note that yellow metal could face support of the 55– and 100-hour moving averages, currently located circa 1,488.00. Thus, if the given pattern does not hold, gold could target the 200-hour SMA at 1,495.49.
Hourly Chart
Daily Chart
Traders remain neutral
On Thursday, 52% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 59% of orders were to buy and 41% to sell.