A fundamental surge has occurred. Due to another Trump tariff announcement the USD dropped like a brick.
As a result of that commodity prices have jumped. Gold touched the 1,300.00 level on Friday.
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate skyrocketed to the psychological level at the 1,290.00 mark. During today's morning, the rate breached the falling wedge pattern north.
From the one hand, the price for gold could continue to increase. In this case, important resistance level to look out for is the psychological level at the 1,300.00 mark.
On the other hand, the rate could trade sideways around the psychological level at 1,295.00 in the short term.
It is unlikely, that the price for gold could drop lower than 1,287.27 due to the support of the monthly PP.
Hourly Chart
On the daily candle chart, the rate has passed the resistance levels of the 1,290.00 level, which it was expected to do only in July.In general, the rate could reach the 1,308.00 level in June.
Daily Chart
Traders remain short on Gold
The SWFX sentiment was 64% short on Thursday. Namely, 64% of open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment became 69% short on Friday. It was caused by short term long positions being closed and some traders wanting to take advantage of a possible retracement down.
Meanwhile, in the 1000 base point range around the current price 51% of pending orders were set to sell the metal.
Namely, the orders are neutral.