Due to the weakness of the US Dollar, gold prices have jumped to the 1,295.00 level.
During the surge the rate broke five technical resistance levels before it was stopped by a pivot point at 1,295.13.
On Friday, Canada and the US will publish their monthly employment data sets. It has five important data sets impacting the USD/CAD. It is the most complicated one to work with, as each data set impacts the rate differently.
For more information watch the weekly calendar analysis stream on our YouTube channel.
XAU/USD short term forecast
Short term future depends on the pivot point at 1,295.13.
If the rate passes this resistance level, it will reach for the 1,300.00 mark, which might stop a further surge.
Meanwhile, the gold price might bounce off the pivot point and decline down to the support of a 23.60% Fibonacci retracement level at 1,291.57.
Hourly Chart
On the daily chart it can be seen that the rate is consolidating its decline after falling from the 1,340.00 level, which was touched in February.Meanwhile, the 55-day SMA was passed on Monday. It now had become part of the resistance cluster near 1,295.00.
At the same time, below the monthly S2, at 1,265.00, the 100-day simple moving average was providing support.
Daily Chart
Traders ride the downwards move
Traders have been largely shorting the metal throughout the last couple of weeks
On Friday, 57% of all the open position volume on the Swiss Foreign Exchange was shorting the metal.
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 mostly set to buy the commodity, as 54% of orders were set to buy.
The buy orders had fallen from more than 80% at the start of the week to the almost neutral level on Friday.