The yellow metal has found support in the 200-hour simple moving average, which has forced the pair into a surge. By the middle of Friday's trading, the commodity price traded above the 1,300.00 level.
In addition, on the Dukascopy Analytics technical charts the pair had no resistance as far as the 1,321.00 level.
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In the meantime, take into account that the Brexit turmoil is still occurring in the British Parliament. That event has taken up most attention of all Forex fundamental traders.
XAU/USD short term forecast
During Thursday's trading session, the yellow metal passed the 55-hour and the 100-hour simple moving averages to end the trading session at the monthly S1.
On Friday morning, the 200-hour simple moving averages helped gold to break the resistance levels of the 55-hour and the 100-hour simple moving averages to trade at the 1,302.16 mark.
In regards to the near-term future, it is expected that the yellow metal will bounce off the upper boundary of the medium pattern line at the 1,306.00 mark.
In addition, most likely, the rate will end the trading session at the 1,300.00 level.
Hourly Chart
On the daily chart the rate has broken a strong resistance cluster, which is located from 1,290.00 to 1,301.00.Meanwhile, the 55-day simple moving average was located at 1,302.25. It had previously provided both resistance and support. Note that at that level there is impact felt from the technical level.
In regards to further above resistance, the most close by was the monthly pivot point at 1,321.03.
Daily Chart
Short sentiment remains intact
On Friday, 56% of the open position volume on the Swiss Foreign Exchange remained short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders were set up to buy the metal, as 67% of orders were set to buy.