Gold surges due to Federal Reserve

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The price for gold has fluctuated due to changes in market demand for the US Dollar not due to changes in the perceived value of gold as a commodity. Namely, at 19:00 GMT on Wednesday, the price dipped as the USD initially gained value due to the reveal that monetary stimulus would be reduced. However, as the markets realized that the remaining stimulus would still dilute the value of the USD, a surge began.

By the middle of Thursday's European trading hours, the price had reached above the 1,785.00 level.

Economic Calendar Analysis



The week's notable events will end with the weekly US Unemployment Claims at 13:30 GMT and the US PMIs at 14:45 GMT. These events have rarely caused notable USD moves.

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

XAU/USD short-term forecast

A continuation of the surge would most likely test the resistance of the December high levels at 1,791.80/1,793.40. Higher above, the 1,800.00 mark was expected to act as resistance.

Meanwhile, a decline of the commodity might find support in the 100 and 200-hour simple moving averages at 1,780.00. Below the 1,780.00 level, note the 50-hour SMA near 1,775.00.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal is finding resistance in the trend line, which connects the August, September and November low levels.

Meanwhile, the 50, 100 and 200-day simple moving averages were at the trend line. It was spotted on December 8 that the SMAs were acting as resistance.

Daily Candle Chart


Traders are long

On Thursday, the sentiment on the Swiss Foreign Exchange was 60% bullish, as 60% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 67% to buy the precious metal.

On Wednesday, open position volume was 60% long. Pending orders were 78% to buy.

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