The surge of the yellow metal continues, as it broke the resistance of the 1,860.00 level. By the middle of Thursday's GMT trading the rate had almost reached the 1,890.00 mark.
In theory, the surge could continue to the historical high of 1,912.40.
Economic Calendar Analysis
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the US Manufacturing and Service PMIs survey results are going to be released at 13:45 GMT.
For more information read the weekly event review article by clicking on the link below.
XAU/USD short-term forecast
From the one hand, it is likely that yellow metal is in the overbought zone, as it trades far above the 55-, 100– and 200-hour moving averages. Thus, it is likely that a reversal south could occur.
Meanwhile, note that gold could gain support from the monthly R2 located at 1,861.52. If the given support holds, it is likely that gold could consolidate against the Greenback in the short run.
On the other hand, the metal has no technical resistance. Its surge up to now was stopped by round price levels. As the risk off sentiment remains intact in the markets, it could continue to surge.
Hourly Chart
On the daily candle chart, gold has broken the trend line that connects the 2019 and 2020 high levels. Next resistance on this chart is the historical high level at 1,912.40.
Daily Candle Chart
Traders remain short
Since Wednesday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 65% was short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 93% to buy.