Gold breaks resistance zone

Note: This section contains information in English only.
Source: Dukascopy Bank SA
At 14:00 GMT on Monday, the price for gold reacted to US data. Namely, the US ISM Manufacturing PMI was revealed to b at 50.9, compared to forecast 52.5. The event resulted in a broad drop of the US Dollar. On the gold charts the price spiked through the resistance of 1,680.00 and 1,685.00.

Economic Calendar Analysis



This week, the rate is expected to move due to the publication of the JOLTS Job Openings on Tuesday at 14:00 GMT.

On Wednesday, the US ISM Services PMI is likely going to cause USD moves. The Monday's Manufacturing PMI caused a broad decline of the US Dollar.

Above all, on Friday, the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate are set to move the markets.

XAU/USD short-term forecast

An extension of the surge of the gold price might stop at the 1,700.00 mark. Higher above, note that the 1,705.00, 1,715.00 and 1,720.00 levels have acted as resistance.

On the other hand, a decline of the price could look for support in the 1,660.00 level and the 50-hour simple moving average.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the price has passed below the 2021 and 2022 low level zone at 1,675.00/1,680.00. On September 19 it was observed that the previous support zone has turned into resistance.

More recently, the price once again retraced to the resistance zone. On Monday, October 3, the resistance zone was broken.

Daily Candle Chart


Traders hold long positions

On Friday, the sentiment on the Swiss Foreign Exchange was 65% bullish. Namely, 65% 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 sell the precious metal.

On Monday, positions were 64% long and orders were 57% to sell.

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