Gold has dropped to the 1,270.00 level. The decline began in the aftermath of the volatility increase that was caused by the Federal Open Market Committee on Wednesday at 18:00.
In general, the rate had no additional support besides the 1,270.00 round level as low as 1,263.70.
On Thursday, the Bank of England announced their monetary policy data and information at 11:00 GMT. Moreover, the Governor of the bank will speak at 11:30 at a press conference.
On Friday, the US Employment data sets will be published at 12:30 GMT. This event is considered the second most important release for the USD. However, due to three data sets having individual impact on the USD the range of the volatility increase is wide during the data release.
Meanwhile, check out the previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
XAU/USD short-term forecast
Gold passed the last technical support level on the hourly chart on Thursday morning when it passed the 38.20% Fibonacci retracement level at 1,273.68.
Given that there is no technical support as low as the monthly S1 at 1,263.70, a slow decline of the commodity price is expected to occur.
However, after a sharp drop a period of sideways trading is expected, as the price has to consolidate its new level.
Hourly Chart
On the daily candle chart it is observed that the metal is struggling to pass the resistance of the 1,290.00 level.Meanwhile, note that the monthly support level is gone, as a new month has started. The price has no support as low as the 1,263.70 level on the daily candle chart.
It is unlikely, that the price for gold could jump higher than 1,292.00 due to the resistance of the 100-day SMA and the 23.60% Fibonacci retracement level.
Daily Chart
Traders continue
On the Swiss Foreign Exchange, 64% of open position volume is in short positions.
Meanwhile, the trader set up pending orders in the 1000-base point range around the metal's current price were set to buy.
Namely, 61% of trade orders were set to buy.