Gold has been consolidating by trading sideways since the last review. It has been trading between 1,330.00 and 1,340.00.
In general, the metal could resume its surge as soon as the 100-hour simple moving average approaches the commodity price from below.
The week will end with the Canadian and US employment data being published at 12:30 GMT. This event consists of five different data sets being released.
XAU/USD short-term forecast
On Friday morning, gold traded near the pivot point and simple moving average near 1,333.00 with low volatility.
Meanwhile, the rate was being approached from below by the additional support of the 100-hour simple moving average. The rate was expected to resume its surge as soon as the SMA provides additional technical support.
On the other hand, the metal has become so oversold that a decline lower might occur. If the 100-hour simple moving average fails, the metal's price could decline as low as 1,320.00 level where a monthly pivot point is located at.
Hourly Chart
On the daily candle chart it can be observed that the rate broke the resistance of the both long term patterns.Most likely after the fundamental moves end a full review of the charts will be conducted.
Daily Chart
Short sentiment decreases
Despite the surge of the metal's price, traders remain short on it, as on the Swiss Foreign Exchange 64% of open gold position volume was in short positions on Thursday.
On Friday, as the metal traded sideways, the sentiment became 62% short.
However, the most notable changes on Friday were the absence of sell orders. In the 1000 base point range around the current metal's price 53% of all pending orders on the Swiss Foreign Exchange were set to buy.
Previously, 60% of pending orders were set to sell the metal.