On Friday, the yellow metal traded above the support of the 200-hour simple moving average, which was supported by the R1 monthly pivot point at 1,544.31.
In general, the price was expected to trade sideways until the resistance of the 55-hour simple moving average approaches. Economic Calendar Analysis
The week will end with the three US employment data sets being published at 13:30 GMT.
Next week's data releases will start with the US CPI and Core CPI on Tuesday at 13:30 GMT.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
XAU/USD short-term forecast
As stated above, the 200-hour SMA and the monthly R1 pivot point are expected to keep the rate trading sideways until the resistance of the 55-hour SMA provides resistance.
In general, it could occur next week. Then the rate would get squeezed in and slowly decrease volatility. Afterwards a break out would occur.
In the case of breaking out to the upside, the price would aim at the 100-hour SMA, which on Friday was located near 1,565.00. On the other hand, a breaking out downwards could reach for the support of the 1,500.00 level.
Hourly Chart
For a time being, it appeared on the daily candle chart that a retracement down should occur due to the metal being overbought. The retracement started on Wednesday.
In general, on the daily candle chart the pair has no technical support as low as the 55 and 100-day simple moving averages that are located near the 1,500.00 level. If the support levels of the hourly chart fail, eventually the price could reach for the support of the SMAs.
Daily Chart
Traders stick to short positions
On Friday, 56% of all open gold positions on the Swiss Foreign Exchange were short. The sentiment had remained near this level since Wednesday.
Moreover, sentiment was short before the latest surge. It can be assumed that short positions have broken even during the recent decline.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were neutral – 51% of orders were to buy and 49% to sell.
Previously, the orders were 69% to sell. On Wednesday, 77% to buy. They have been bouncing around.