On Thursday, the yellow metal's price suddenly plummeted and then immediately returned to the previous level. This event was caused by the release of the US employment data.
On Friday, the rate traded in limbo near the 55 and 100-hour simple moving averages.
US Unemployment data
The Bureau of Labor Statistics released the US ADP Unemployment Rate data, which came out better-than-expected of 11.1% compared with the forecast of 12.4%.Gold Price Before and After Event
Economic Calendar Analysis
During the week, notable macroeconomic data releases are set to start on Monday at 14:00 GMT. The US ISM Non-Manufacturing PMI is scheduled to be released.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
XAU/USD short-term forecast
During Friday morning, the rate was testing the support formed by the 55– and 100-hour SMAs near 1,775.00.
If the given support holds, it is likely that some upside potential could occur, and the price for gold could target the psychological level at 1,790.00.
On the other hand, it is possible that yellow metal could trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the commodity price could soon test the resistance trend line of the 2019 and 2020 high levels above 1,790.00.
In the meantime, take into account that the 1,750.00 is most likely going to provide support.
Daily Candle
More sell orders are set up
Since Thursday, on the Swiss Foreign Exchange the sentiment was bearish, as it was 63% short.
Meanwhile, in 1000-pip range around the current metal's price the orders were 66% to sell.
Previously, the orders were 57% to buy.