During today's morning, the XAU/USD exchange rate was trading sideways between the 55-, 100- and 200-hour SMAs.
If the given moving averages hold, the rate could continue to trade sideways within the following trading session.
Institute for Supply Management released the US ISM Non-Manufacturing PMI data , which came out worse-than-expected of 55.1 compared with the forecast of 56.1.
According to the official release: "The NMI registered 55.1 percent, which is 1.8 percentage points lower than the May reading of 56.9 percent. This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index's lowest reading since July 2017, when it registered 55.1 percent. According to the NMI, 16 non-manufacturing industries reported growth. Although the non-manufacturing sector's growth rate dipped in June, the sector continues to reflect strength. The comments from the respondents reflect mixed sentiment about business conditions and the overall economy. A degree of uncertainty exists due to trade and tariffs."
For this pair the week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate tried to surpass the psychological level at 1,425.00.
Note, that gold is supported by the 100– and 200-hour SMAs, currently located circa 1,410.00 mark. Thus, if the given support holds, it is expected, that a reversal north could occur within the following trading hours.
However, note, that the rate has to surpass the 55-hour moving average, currently located at 1,418.63. If the given SMA holds, it is expected, that gold could trade sideways against between the given moving averages.
Hourly Chart
On the daily chart, it can be observed that the decision to mark historical high levels was a correct one.
Namely, one can observe that the zone surrounding the August 2013 high level provided resistance to the commodity price.
Daily Chart
Traders remain neutral on gold
On Friday, on the Swiss Foreign Exchange 46% of open gold position volume was in long positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bearish - 57% of orders were set to sell.