On Thursday morning the yellow metal was testing the support of a medium scale ascending channel pattern near 1,310.00.
If that support level would get passed, the commodity price would fall, as there is no technical support as low as the 1,295.00 level.
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.
On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
XAU/USD short term forecast
The short term future for the gold price is dependent on the support of the medium scale ascending channel pattern, which represents the surge of March.
If its support line gets passed, the commodity price is expected to reach down to the monthly S1 at 1,295.15, as it has no other technical support below the trend line.
On the other hand, a rebound might occur and the bullion would test the resistance of the 200-hour simple moving average near 1,311.20.
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 1,306.40, 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 are no longer bullish. On Thursday, the order became neutral, as 52% of orders were set to buy.