The yellow metal's price found support in the 200-hour simple moving average and started a surge. Note that the surge is captured by the borders of a channel up pattern.
In addition, note that by the middle of Friday's trading, the metal had passed the resistance of the 55 and 100-hour simple moving average.
On Wednesday, the price could move due to the FOMC Meeting Minutes at 18:00 GMT. The value of the US Dollar might be impacted by new information revealed by the US Federal Reserve..
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
In the case of the pattern holding, the metal would test the resistance of the 1,845.00 level during the first couple of sessions of the next week. If this level fails, the rate could soon test the resistance of the 1,850.00 level and afterwards the February high at 1,855.00.
If the channel fails, the future depends on which trend line is broken. A breaking of the resistance line would result in a more early test of the mentioned resistance levels. On the other hand, a breaking of the lower trend line could look for support in the 200-hour SMA.
Hourly Chart
XAU/USD daily charts review
On the daily chart, note that the 1,850.00 level's resistance is being strengthened by the 200-day simple moving average. In the meantime, the 1,800.00 mark is being supported by the 100-day simple moving average.In the meantime, on Thursday, it was spotted that the price has been surging in a channel up pattern since the start of April. Most recently, the metal bounced off the channel's upper trend line.
Daily Candle Chart
Traders are long on gold
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 55% bullish, as 55% of open position volume was long.
On Friday, the sentiment changed to 54% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 53% to buy the metal.