US ISM Manufacturing PMI
The Institute for Supply Management released the US ISM Manufacturing PMI survey data results, which came out worse-than-expected of 47.8 compared to the forecast of 50.4.
The Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee Timothy R. Fiore commented: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."
Economic Calendar Analysis
On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published.
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate raised to the resistance level formed by the monthly PP and the 200-hour SMA circa 1,500.00. During Thursday, the rate was testing the given resistance.
If the given resistance level holds, it is likely that yellow metal could decline against the US Dollar within the following trading session. In this case, the commodity could be gain support of the 55– and 100-hour SMAs, located circa 1,485.00
Otherwise, it is likely that the price for gold could continue to go upwards in the nearest future. The exchange rate could target the descending trend line located circa 1,525.00.
Hourly Chart
On the daily candle chart, the price for gold has passed the resistance of the 55-day SMA. In general, the SMA can no longer be used for guidance, as the rate has both passed its support and broken resistance during this week.
Daily Chart
Traders remain neutral
Since Tuesday, 51% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bearish– 57% of orders were to sell and 43% to buy.
Previously, the orders were 55% to sell.