On Friday, the XAU/USD exchange rate tested the support formed by the 55- and 100-hour SMAs.
It is unlikely that some upside potential could prevail, as gold is pressured by 200-hour SMA.
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 Thursday, the XAU/USD exchange rate reversed south from the upper boundary of the medium-term descending channel at 1,497.30. During today's morning, the rate was testing the support formed by the 55- and 100-hour SMAs at 1,489.29.
From a theoretical point of view, some downside potential could prevail in the market, as the price for gold should target the lower channel line. It is likely that the commodity price could decline to the psychological level at 1,480.00.
However, if the given moving averages hold, it is likely that yellow metal could consolidate against the US Dollar within the following trading session. Also, it is unlikely that a breakout north could occur, as the rate is pressured by the 200-hour SMA at 1,494.10.
Hourly Chart
Daily Chart
Traders remain neutral
On Friday, 53% 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.