Gold ends decline

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The decline of the yellow metal, which was caused by the Federal Reserve, occurred in a narrow descending channel pattern. During late hours of Friday's trading, the commodity broke the pattern and started a recovery.

By the middle of Monday's trading, the price had passed the 50-hour simple moving average and reached the 1,800.00 mark.

Economic Calendar Analysis



On Tuesday, the US ISM Manufacturing Purchasing Managers Index release at 15:00 GMT could cause USD moves.

On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be published. The event might cause minor USD volatility.

The day will end with the US ISM Services PMI, which might cause minor volatility.

On Friday, the US is going to publish employment data at 13:30 GMT.

Click on the link below to find out more about data releases of this and other currency exchange rates.

XAU/USD short-term forecast

If the bullion's price reaches above the 1,800.00 mark, it could test the resistance zone that is located below 1,810.00. Above the 1,810.00 mark, take into account the 1,815.00 mark and the 100-hour simple moving average.

On the other hand, a decline of the price could find support in the 50-hour simple moving average, before aiming at the Friday's low levels near 1,780.00.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the rally of the USD has caused a drop of the price for gold to plummet below the 50, 100 and 200-day simple moving averages and a breaking of the channel, which captured the surge since early December.

In regards to larger scale support, note the November and December low level zone below the 1,760.00 mark.

Daily Candle Chart


Traders go long

On Monday, the sentiment on the Swiss Foreign Exchange was 57% bullish, as 57% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 63% to buy the precious metal.

On Friday, traders went long, as the sentiment was 54% long and orders were 75% to buy.

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