The worse than expected data signalled to the markets that the Federal Reserve might not hike US interest rates as steeply, as previously thought. Namely, the borrowing costs and with it demand for the USD is now forecast to be lower than previously thought.
On gold price charts it resulted in a surge. However, by the middle of Thursday's trading, the commodity had encountered resistance in the 200-hour simple moving average. Economic Calendar Analysis
This week notable events are over.
Next week, starting with Tuesday, the scheduled fundamental events will start to impact the financial markets. At 15:00 GMT, the CB Consumer Confidence could impact the US Dollar's value.
On Wednesday, various US events are expected to cause market moves. At 13:15 GMT, the US ADP Non-Farm Employment Change might cause a minor USD move.
Afterwards, at 13:30 GMT, the US Preliminary Quarterly GDP is set to reveal whether the United States remain in a recession.
The day will end with a speech of the US Federal Reserve Chairman Jerome Powell at the Brooking Institution in Washington at 18:30 GMT.
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
In the case of the metal passing above the 200-hour SMA, the price would test the 1,765.00 level and the resistance zone above it.
However, a decline of the metal could find support in the 1,745.30/1,749.55 range and the 50 and 100-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the metal has bounced off the resistance of the 200-day simple moving average and the 1,787.05/1,808.15 zone.The commodity price might look for support in the 100-day simple moving average near 1,710.00 and the 1,700.00 mark. On the other hand, a potential another test of the 200-day SMA near 1,770.00 is possible.
Daily Candle Chart
Traders turn long
On Wednesday, the sentiment on the Swiss Foreign Exchange was 52% bearish. Namely, 52% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 65% to sell the precious metal.
On Thursday, open positions were 56% long and pending orders were 51% to sell.