The surge has reached the 1,450.00 level, where it met with a dominant patterns trend line and a monthly pivot point. Latest Fundamental Event Report
The Federal Reserve released the Federal Funds Rate data, which came out in line with the expectations of 2.25%.
During the press conference the Fed Chairman Jerome Powell said a recent rate cut is not the start of a long series of rate cuts. He suggested that a global economic slowdown, the US trade tensions and a need to boost low inflation are the reasons why the US policymakers decided to lower the rate. Thus, the US Dollar appreciated against the Euro.
Economic Calendar Analysis
On Friday, the US employment data will be published. It will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the official Unemployment Rate.
XAU/USD short-term forecast
On Friday, the yellow metal's price was testing the upper trend line of a massive scale ascending channel pattern. The trend line was also strengthened by a monthly pivot point.
Moreover, both of these levels were located at the psychological resistance of a round level. Namely, they were located at the 1,450.00 level.
If this level gets pierced, the surge would continue. On the other hand, the metal could trade sideways until it is less overbought.
Hourly Chart
The daily candle chart has been replaced with the weekly candle. That is done to properly show the scale of the large pattern.
Although, note that it is too big, as it is quite rare that such large pattern exist. The largest scale trends occur during a couple of months or at the max a year.
Weekly Chart
Traders short gold
On Friday, on the Swiss Foreign Exchange 68% of open gold position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bearish- 58% were set to sell, and 42% of orders were set to buy.
On Thursday, the orders were 56% bullish.