The resistance of the hourly simple moving averages held for eight hours until the SMAs failed. It resulted in a surge.
Since late Thursday, the rate had been consolidating and trading sideways above the 1,715.00 mark.
The week will end with the employment data release from the United States, on Friday at 12:30 GMT.
Next week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
XAU/USD short-term forecast
On the one hand, it is likely that some upside potential could continue to prevail in the market, and the price for gold could target the psychological level at 1,740.00.
On the other hand, it is likely that yellow metal could trade sideways against the US Dollar in the 1,715.00/1,725.00 area within the following trading session.
Meanwhile, it is unlikely that bears could prevail in the market, and the exchange rate could decline below 1,702.00 due to the support formed by the 55-, 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the metal is overbought, as its price is far above the daily simple moving averages. The most close by 55-day SMA was located at the 1,644.50 mark.
Daily Candle
Long sentiment growth stops
On Tuesday, the Swiss Foreign Exchange sentiment was 55% long. Namely, 55% of open position volume was in long positions.
By mid-day on Wednesday, the sentiment was 56% long, and, on Thursday, 58% of volume was long.
On Friday, the growth of long sentiment stopped, as 57% of volume was bullish.