The week could bring elevated levels of volatility in the gold market, if economical data regarding unemployment rate and nonfarm payroll in the U.S. suggest that there could be unexpected shift in economical environment, thus forcing traders and portfolio managers to adjust their positions.
Worth mentioning ISM services PMI and Fed chairs speech will also be crucial for near term guidance.
XAU/USD short-term forecast
In a shorter time frame gold is trading sideways. Within a price range from 2622.00 to 2664.00, whether possible ascending channel pattern will be forming for both shorter and longer time frames.
If rejection of upside price momentum occurs, further price discovery could be to price levels 2600.00 and 2540.00.
XAU/USD daily charts review
On the daily candle chart, gold has seen a rejection of all time highs multiple times. Overall since November, price of gold has seen 9.0% volatility. Higher trading volumes have occurred around 2645.00 price.Daily Candle Chart
Traders take profits
On the 4th of December, the overall current sideways price action is confirmed by trader sentiment. Looking at the volume and trader positioning on XAU/USD, no significant trading bias can be seen.
Meanwhile, in the 1000 point range around the latest price, the pending orders were 25% to sell the metal.