On Friday morning gold prices were surging up without any technical resistance level as high as the 1,320.00 level.
The rate was expected to test a pivot point at 1,321.00 and the psychological resistance of the 1,320.00 level.
On Friday, the last event of the week will be the Canadian CPI and Core Retail Sales release at 12:30 GMT.
For more information watch this week's economic calendar analysis stream.
XAU/USD short term forecast
During Thursday's trading session, the rate was supported by the 200-hour simple moving average to end the trading day at 1,305.00. On Friday morning, the yellow metal was located at the 1,311.76 mark.
It is expected that gold might appreciate against the US Dollar to surge to the upper boundary of the descending medium pattern line at 1,315.50.
Besides, the simple moving averages will support the surge during the day.
Hourly Chart
On the daily chart, the commodity price reached a previously set target by touching the monthly pivot point at 1,321.03.In regards to the future, the 55-day SMA, which was located at 1,304.40 on Friday, was expected to push the price even higher.
Daily Chart
Traders continue to short the metal
Since Monday, 57% of the open position volume on the Swiss Foreign Exchange remained short.
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 were neutral, as the orders in that range were balanced. 50% were set to buy and 50% were to sell.