The United States Bureau of Economic Analysis has published the country's quarterly Advance GDP data. The markets expected that the GDP would have increased by 2.0% during the quarter. The data came in below expectations, as GDP had increased by 1.1%. The lower data confirms views of an upcoming recession. A potential recession would cause a run to safety in the financial markets that would strengthen the US Dollar. Due to this reason, the USD spiked 0.30% on the news.
In regards to the near term future, same broader support and resistance zones remain relevant. Meanwhile, the hourly simple moving averages and round price levels appear to be capable of impacting the price in the shorter term. Economic Calendar Analysis
The top event of the week will be the US Core PCE Price Index release at 12:30 GMT. The US Federal Reserve looks at this inflation indicator for future guidance of their monetary policy.
XAU/USD short-term forecast
A recovery of the metal's value might encounter resistance in the 2,000.00 mark and the 2,000.00/2,010.00 range. Higher above, note that round price levels acted as resistance and support during the first half of April.
A decline of the commodity price would have to reach below 1,970.00, before approaching the February and January high levels at 1,960.00 and 1,949.00.
XAU/USD daily charts review
On the daily candle chart, the metal has been struggling to move since mid-April, as the price remains near 2,000.00. It could be due to the fact that the markets expect the next week's Federal Reserve Rate hike.Daily Candle Chart
Traders go long and set up buy orders
On Thursday, gold traders were bullish, as 53% of open positions were long.
Meanwhile, pending trade orders in the 1000 point range around the current price were 96% to buy the metal.