Gold has reached a new high level. The 1,450.00 mark has been pierced.
In general, most technical levels have been left behind. The metal's price faces only monthly pivot points. Next one on Friday morning was located at the 1,464.00 level.
Moreover, the August 2013 high level has been pierced. Next historical level is the May 2013 level at 1,488.40.
Data releases for this week are over.
Watch the Economic Calendar Overview on Friday at 12:00 GMT to review next week's events.
XAU/USD short-term forecast
The surge of the yellow metal has pierced the 1,450.00 level. Moreover, the surge is expected to continue after a period of consolidation. It is expected to continue due to the fact that the information that a Federal Reserve rate hike is incoming should continue to spread.
In general, technical levels should be ignored due to the nature of the fundamental surge. Although, they can still be used for guidance to set trade orders.
Namely, note the psychological impact of the 1,450.00 level, the August and May 2013 high levels of 1,434.70 and 1,488.40. In addition, a monthly pivot point is located at 1,464.37.
Hourly Chart
On the daily chart, it can be observed that the metal has pierced the resistance of the August 2013 high level at 1,434.70. The historical level was expected to provide support to the commodity price.
Daily Chart
Short sentiment remains unchanged
Since the middle of Wednesday, 62% of open gold position volume on the Swiss Foreign Exchange was short.
As gold reaches new high levels, traders lose more and more by sticking to the short positions in expectations of a retracement down.
On Friday, in the 1000 base point range around the current metal's price the orders were long - 73% of orders were set to buy. Previously, 69% of orders were set to buy.