Gold reveals ascending pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
There are a number of important updates to note in regards to the price of Gold. First of all, the price has pierced the resistance line of the recent June high levels. Secondly, the price has revealed that it is surging in a channel up pattern. In addition, the simple moving averages are left below the bullion.

Economic Calendar Analysis



On Tuesday, the US ISM Services Purchasing Managers Index release at 14:00 GMT could cause a minor move on USD pairs. However, note that during most times the event does not cause an increase of volatility.

On Wednesday, at 18:00 GMT, the Federal Open Market Committee is set to publish its Meeting Minutes. Note that it will be just the meeting minutes for the previous meeting. There is no rate announcement or statement being published. Namely, the meeting minutes will have more detailed information about the previous decision of the Federal Reserve.

On Thursday, the US Unemployment Claims at 12:30 GMT could cause a minor move on USD pair and commodity price charts.

Click on the link below to find out more about the data releases of this and other currency exchange rates.

XAU/USD short-term forecast

If the metal continues its surge, it is highly likely that the bullion would reach the resistance of the 1,800.00 mark. However, take into account that the price is bound to encounter resistance in the 1,790.00 and 1,795.00 levels. The price bounced off these levels throughout the previous week.

On the other hand, a potential decline would look for support in the lower trend line of the channel up pattern. Moreover, if the SMAs catch up from below, they are highly likely going to provide technical support.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal pierced the support of the 50.00% Fibonacci retracement level near 1,760.00 on Wednesday.

Previously, the commodity price was squeezed in between the retracement level and the resistance of the 100-day simple moving average near 1,790.00.

Daily Candle Chart


Traders are long on gold

Since Monday, the sentiment on the Swiss Foreign Exchange was 68% bullish, as 68% of open position volume was long.

Meanwhile, on Thursday, in the 1000-pip range around the metal's price the pending orders were 56% to sell the metal.

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