At the 1,500.00 level the metal's price would meet with the support of the 200-hour simple moving average. At that level either a reversal will occur or the decline will continue.
Economic Calendar Analysis
There are no more data releases scheduled this week that might impact the price of gold.
Meanwhile, take into account that next week the FOMC Meeting Minutes are set to be published at 18:00 GMT on Wednesday.
XAU/USD short-term forecast
On Friday morning, the yellow metal's price dropped below the support of the 55 and 100-hour simple moving averages and the 1,510.00 level.
Due to that reason the rate was expected to reach for the support of the 1,500.00 level. The round level's support was also strengthened by the 200-hour simple moving average.
If the 1,500.00 holds, the rate will resume its surge and test the resistance levels at and above 1,510.00. On the other hand, if the 1,500 .00 fails to hold, the metal could reach as low as 1,490.00.
Hourly Chart
The massive scale pattern of the weekly candle chart has been broken. The metal continues to surge. As this pattern has been broken, there is no resistance to the metal.
Meanwhile, note that the daily simple moving averages are located below the 1,300.00 level. It is a clear indicator of how much the metal is overbought.
However, the move is purely fundamental. Namely, it is a run to safety. Due to that reason the indicators have a small impact on the price.
Weekly Chart
Traders close short positions
On Thursday, 73% of open position volume on the Swiss Foreign Exchange was in short positions.
On Friday morning, the sentiment was 68% short. Traders had closed short positions and/or opened long positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bullish- 69% were set to buy, and 31% of orders were set to sell.
Previously, the orders were 59% to sell.