Meanwhile, note that the support of the 55-hour simple moving average has approached. It was providing notable support on Friday. Namely, the commodity price was no longer retracing down below the 1,500.00 level.
Economic Calendar Analysis
This week there will be no more data releases occurring, which could impact the price of gold through the strength of the US Dollar.
XAU/USD short-term forecast
On Thursday, the XAU/USD exchange rate traded sideways at the psychological level at 1,500.00. During Friday's morning, the rate continued to consolidate.
Given that gold is supported by the 55-hour moving average, currently located at the 1,498.80 mark, it is expected, that bulls could prevail in the market. A possible upside target is the resistance level—the monthly R3 at 1,521.59.
It is unlikely, that some downside potential could prevail in the market, and the price for yellow metal could tumble lower than the 1,485.00 mark due to the support level formed by the monthly R2 and the 100-hour SMA.
Hourly Chart
The massive scale pattern of the weekly candle chart has been broken. The metal continues to surge. As this pattern has been broken, there is no technical resistance to the metal.
Meanwhile, note that the daily simple moving averages are located below the 1,300.00 level. It is a clear indicator of how much the metal is overbought.
However, the move is purely fundamental. Due to that reason the indicators have a small impact on the price.
Weekly Chart
Traders remain short on gold
Since Thursday, on the Swiss Foreign Exchange 74% of open gold position volume was in short positions.
On Thursday, in the 1000 base point range around the current metal's price the orders were bullish- 73% were set to buy, and 27% of orders were set to sell.
The orders changed on Friday, as 53% of pending commands were set to buy and 47% to sell.