After testing the support of the 1,600.00 level for four times since Wednesday morning, the yellow metal began to surge on Thursday. It occurred, as the commodity price got approached by the 55-hour simple moving average.
In regards to the near term future, another test of the 1,640.00 level was expected.
The macroeconomic data release week will end with the US Final GDP data release on Thursday at 12:30 GMT.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
23.03-27.03 Event Historical Reactions
XAU/USD short-term forecast
By the middle of Thursday's London trading hours, the metal's price was surging after finding support in the 55- hour SMA and passing the resistance of the pivot point at 1,607.96. In general, the rate was expected to reach for the 1,640.00 level, which stopped the metal's surge on Tuesday.
If the 1,640.00 level would get passed, the pair would aim at the resistance of the monthly simple pivot point at 1,668.23. However, a surge could be slowed down by the 1,650.00 level.
On the other hand, the price might bounce off the 1,640.00 level and trade sideways until not only the 55-hour SMA, but also the 100 and 200-hour simple moving averages catch up to the metal. The approaching of the price by the simple moving averages would signal that the metal is no longer overbought.
Hourly Chart
On the daily candle chart, the price has reached the resistance of the weekly R2 simple pivot point at 1,633.61 and left the 55-day simple moving average at 1,582.54.
In the meantime, the rate has been finding support in the 1,600.00 level and the monthly simple pivot point at 1,607.96.
Daily Chart
Traders are long on gold
On Thursday, the Swiss Foreign Exchange sentiment was 56% long. Namely, 56% of open gold position volume was in long positions.
The long sentiment had been declining gradually throughout the week. On Monday, traders were 66% long.