On Friday, the price for gold raised to the 1,975.00 level.
It is likely that yellow metal could gain support from the 55-, 100- and 200-hour SMAs and extend gains in the short run.
Economic Calendar Analysis
The first week of the month is upcoming. It is set to reveal monthly data sets, which are expected to cause notable currency rate adjustments.
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
During previous trading session, the XAU/USD exchange rate raised to the 1,975.00 level. During Monday morning, the rate reversed south.
It is likely that yellow metal could gain support from the 55-, 100– and 200-hour moving averages in the 1,942.00/1,951.00 area and trade upwards in the short run.
In the meantime, if the exchange rate fails to exceed the 1,975.00 level, it is likely that gold could trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the price bounced off the lower trend line of the long term channel up pattern. From a technical perspective, the pattern was the cause of the Wednesday surge.
Daily Candle Chart
Traders remain long
On Monday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 58% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 85% to buy.
Previously, orders were 98% to buy.