On Friday, the release of the US Core PCE Index did not reverse the recovery. By mid-day, the price had reached the 2,373.70/2,400.00 range that was acting as resistance. Economic Calendar Analysis
This week's notable events are over. Next week, there is nothing notable scheduled until Tuesday.
XAU/USD short-term forecast
A bounce off from the range could result in the rate looking for support in the 2,350.00 and 2,340.00 levels. However, the 2,370.00 level was acting as support throughout the first part of the day and could continue to hold the price up.
In regards to resistance, besides the 2,373.70/2,400.00 range, the 50 and 100-hour simple moving averages might push the price down. Meanwhile, in the case of a surge above 2,400.00 could encounter resistance in the 2,420.00 level and the 200-hour simple moving average.
XAU/USD daily charts review
Prior analysis: "The price has retreated to the support and resistance range at 2,390.00/2,430.00.A move below the support range could result in a decline to the 2,350.00 level, which is strengthened by the 50 and 100-day simple moving averages.
On the other hand a bounce off from the zone would confirm that it is still capable of keeping the metal's price up and new all-time-highs are possible."
The metal has found support in 2,350.00 and the two moving averages. However, the prior support is now acting as resistance.
Daily Candle Chart
Traders remain short
Since last week and up to this Monday, 75% of traders were short, as they expected a further decline.
However, last week, pending orders for gold in the 1000 point range around current price were 83% to sell. On Monday, traders had set up to buy and close short positions, as 78% of orders were to buy.
On Wednesday, positions were 74% short and orders were just 54% to buy.
By mid-Friday, a portion of bearish positions was closed, as 66% of volume was short. Meanwhile, pending orders were 100% to sell.