On Thursday, the yellow metal marked its fifth consecutive trading session of sideways trading. The metal remained at the 1,290.00 level.
Meanwhile, on the hourly chart technical signals could be observed that indicated that a surge of the metal might occur in the near term future.
Until Friday there are no notable macroeconomic data releases scheduled to take place.
On Friday, at 12:30 GMT the US and Canadian employment data sets will be published. The US data is expected to impact all USD pairs.
Meanwhile, the Canadian data should cause a much bigger impact on all CAD pairs. Most complicated price movements will happen on the USD/CAD.
XAU/USD short term forecast
During Wednesday's session, the yellow metal was supported by the 55-hour simple moving average to end the day at 1,290.00. On Thursday, the 55-hour and the 100-hour SMAs supported the rate to the 1,292.07 mark.
Most likely, the currency exchange rate will be trading sideways during the day. It is expected that the rate will stay at the 1,285.00 level.
On the other hand, the support levels of the 100-hour and the 55-hour simple moving averages might push the rate to the 1,295.00 level.
Hourly Chart
On the daily chart, the commodity price had reached below the lower trend line of a long term ascending channel pattern.Meanwhile, note that the rate has additional support on the daily chart. Namely, the 100-day SMA was providing support near 1,280.00.
Daily Chart
Traders continue to short the metal
Since Wednesday, 58% of the open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders in that range were set to buy in 69% of cases.
The data indicated that trader had mostly open short position on Thursday. However, they had set up close buy stop losses and buy to open long orders that would be triggered in the case of a surge.