The yellow metal passed the combined support of the 200-hour simple moving average and the 1,896.60/1,908.40 zone. Moreover, the following decline touched the 1,880.00 level.
In addition, the rate has broken the channel up pattern, which guided it since the start of December.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT.
During the next week there will be minor data sets published, which could cause initial reactions. Traders with close by tight stop losses should take into account the times of the macroeconomic data releases.
On Wednesday, the United States Bureau of Labor Statistics is set to publish the Consumer Price Index and Core Price Index at 13:30 GMT.
Afterwards, at 13:30 GMT, expect the weekly US Unemployment Claims.
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
From the one hand, it is likely that a reversal north could occur, and yellow metal could extend gains against the US Dollar in the short run. The rate could face the resistance area formed by the 55-, 100– and 200-hour SMAs in the 1,908.00/1,930.00 range.
From the other hand, gold could continue to depreciate against the Greenback within the following trading session. Note that the nearest support level—the Fibo 23.60% is located at 1,860.59.
Hourly Chart
On the daily candle chart, note the channel up pattern, which has guided the metal since the start of December. It was broken on Friday. Moreover, the metal has retreated below the 100-day simple moving average.
In the meantime, the price still had the support of the 55-day simple moving average, which was located at the 1,873.64 level.
Daily Candle Chart
Open positions are unchanged
On Thursday, the sentiment on the Swiss Foreign Exchange was 54% bullish, as 54% of open position volume was long.
On Friday, 54% of open position volume was long. The sentiment had not changed.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 87% to buy the metal.
Previously, the orders were 54% to buy. The close by orders could be the stop losses of the long positions and open to go long positions.