The surge coincided with a broader US Dollar's weakness that was caused by US Federal Reserve rate cut expectations. On Wednesday, the Fed affirmed that it needs more data to decide upon a cut. However, the markets saw this as a reaffirmation that the Fed might cut in September. Economic Calendar Analysis
On Friday, the US monthly employment data sets are bound to move the markets. At 12:30 GMT, the US Bureau of Labor Statistics will publish the Average Hourly Earnings, Non-Farm Employment and the Unemployment Rate. Better than expected data is set to strengthen the USD. Below forecast numbers are likely to cause a decline of the USD.
XAU/USD short-term forecast
A continuation of the price surge might eventually test the prior all-time-high level near 2,480.00. Higher above, the 2,500.00 mark is expected to act as resistance.
On the other hand, a decline might look for support in the 2,440.00, 2,430.00 and 2,420.00 levels and the 50-hour simple moving average.
XAU/USD daily charts review
The price has moved above the support and resistance range at 2,390.00/2,430.00. It is observed that the range has resumed to act as support and could be the catalyst for a test of the all-time-high level.Daily Candle Chart
Traders remain short
On Monday, 66% of volume was in short positions. The pending orders were 71% to sell the metal.
By late-Thursday's trading, the positions were 71% to sell. In the meantime, pending orders were 71% to sell.