On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
XAU/USD short-term forecast
A surge above 2,040.00 could face resistance in the 2,050.00 and 2,060.00 levels. Higher above, note the 2,080.00 mark and the all-time high levels at 2,120.00/2,140.00.
On the other hand, a potential decline of the price is expected to look for support in the 2,007.45/2,012.75 range and the 200-hour simple moving average. Close to these levels, note the 2,000.00 mark and the combination of the 50 and 100-hour simple moving averages.
XAU/USD daily charts review
On the daily candle chart, on Monday, support was found in the 50-day simple moving average near 1,980.00. The recent move appears to be concise with the support holding on, but actually the move was not caused by the SMA. The reason was the Federal Reserve event.In general, additional resistance could be found in the 2021 and 2022 high level range at 2,065.30/2,082.80.
On the other hand below the 50-day SMA, the 100 and 200-day SMAs are strengthening the 1,950.00 level.
Daily Candle Chart
Gold traders reopen short positions
Before the Fed rate announcements, 52% were short and orders were 59% to sell.
On Thursday, traders were 54% short and orders were 52% to sell.
A 2% move in the sentiment for gold is a notable shift in positions. It appears that a part of traders expect a retracement back down.