The surge of the yellow metal has continued, as on Friday the 1,635.00 level was reached.
During the latest surge, the commodity price passed the resistance of a monthly pivot point at the 1,628.78 level. Due to that reason the closest by technical resistance was the monthly R2 simple pivot point at the 1,667.43 level.
Economic Calendar Analysis
Next week there are no notable events that might impact gold. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published.
At the same time, the US Preliminary GDP is scheduled to be published.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
The yellow metal's surge is expected to overextend, and a period of sideways trading should occur. Most likely this would happen just below a round price level.
On the other hand, the metal could retrace back down, if its price increases too sharply.
Hourly Chart
On the daily candle chart, Dukascopy Analytics added a new channel up pattern, which was drawn by using the February and December low levels.
In general, judging by the size of this pattern and comparing it with the pattern that guided the late 2019 decline, it is expected that the channel up could guide the price upwards during the following months.
Daily Chart
Traders are short on gold
Since Thursday, the Swiss Foreign Exchange gold sentiment was 61% short. Namely, 61% of open position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 59% of orders were to buy and 41% to sell.
Previously, the orders were 68% to buy.