Gold price reaches 1,770.00 level

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The resistance zone that is located below the 1,765.00 mark, failed to keep the price of gold down. Late on Monday, the price reached above the resistance zone and touched the 1,770.00 level. The 1,770.00 mark provided resistance and caused a retracement down.

Economic Calendar Analysis



On Tuesday, the US ISM Services PMI at 14:00 GMT could impact the value of the US Dollar and all USD currency exchange rates.

On Wednesday, the ADP Non-Farm Employment Change at 12:15 GMT might cause USD volatility.

On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD.

On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.

Click on the link below to find out more about the data releases of this and other currency exchange rates.

XAU/USD short-term forecast

If the price for gold continues to decline, it could look for support in the 100 and 200-hour simple moving averages that strengthen the 1,750.00 mark's support. A passing of the 1,750.00 level would look for support in round price levels before reaching the September low level at 1,723.00.

A potential surge would most likely test round price levels like the 1,770.00 mark before reaching the September 21 and 23 high levels near 1,783.00.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the yellow metal's price has pierced the resistance of the channel down pattern, which guided the rate's decline throughout September.

In the near term future, the metal could find resistance in the 55, 100 and 200-day simple moving averages in the 1,785.00/1,808.00 range.

Daily Candle Chart


Traders are long on gold

Since Wednesday, the sentiment on the Swiss Foreign Exchange was 70% bullish, as 70% of open position volume was in long positions.

On Monday, the sentiment was 69% long. On Tuesday, 68% of volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 76% to buy the precious metal.

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