The yellow metal has retreated to trade sideways below the 1,700.00 level. Namely, it continues to trade sideways in an almost ten dollar range by fluctuating between the 1,690.00 and 1,700.00 levels.
It changed the spot of trading sideways during the speech of the Chairman of the US Federal Reserve, which strengthened the US Dollar.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate.
Next week, on Wednesday, the US Consumer Price Index data could cause a minor move on USD assets at 13:30 GMT.
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
The Chairman of the US Federal Reserve Jerome Powell made a speech on Thursday, which caused a surge of the US Dollar. This resulted in the price of gold bouncing off the combined resistance of the 1,720.00 mark and the 55-hour simple moving average.
The price almost immediately reached the 1,690.00 level, which provided support. By the middle of Friday's trading, the metal was trading sideways in the 1,690.00/1,700.00 zone.
In the near term future, the price was expected to continue to trade sideways until it is approached by the 55 and 100-hour simple moving averages, which were located above the 1,710.00 level.
Hourly Chart
On the daily candle chart, the metal has broken the channel down pattern, which guided it since August. If one takes into account that it was broken due to the comments of the head of the Federal Reserve, it appears that the decline of the metal could accelerate.
However, the price has found support in the 61.80% Fibonacci retracement level at the 1,690.05. In the case of this level being passed, the metal could look for support in the May and June low level of 1,672.40.
Daily Candle Chart
Traders are long on gold
On Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 72% of open position volume was long.
On Thursday, 71% of volume was long. Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 54% to buy the metal. The orders were 69% to buy on Thursday.