Afterwards, the markets were looking forward to the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. In general, the head of the central bank stated that there are no expectations of Fed Funds Rate cut. The only way the policymakers would ease the rate would, if something breaks. Namely, unemployment bounces above 4.0% or the banking sector crashes. These comments caused a surge of the US Dollar that beat down the stock market.
However, by mid-Thursday, a recovery was taking place in the market. The price for gold started a surge and reached the 2,065.00 level. Economic Calendar Analysis
On Friday, at 13:30 GMT, the US Employment data sets will be released and they are set to impact the market. The release consists of Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings month on month difference.
XAU/USD short-term forecast
A continuation of the surge could be slowed down by the 2,075.00 level, before the metal reaches the late 2023 high levels near 2,085.00/2,090.00.
On the other hand, a decline might look for support in the 2,035.00/2,040.00 range and the 2,050.00 mark. In addition, note the ascending 50, 100 and 200-hour simple moving averages at 2,030.00/2,040.00. Below 2,030.00, there are two support ranges near 2,010.00 and 2,050.00.
XAU/USD daily charts review
On the daily candle chart, the metal has broken the resistance of the 50-day simple moving average. Next resistance is the 2,065.00/2,090.00 range.Daily Candle Chart
Gold traders are shorting
On Thursday, 59% were short, as that proportion of open position volume was in short positions.
In the meantime, pending orders in the 1000-pip range around the current price were 78% to sell the metal.
Before the rate announcement and press conference, positions were still 57% short. Orders were 75% to sell.