Gold has surged back above the 1,500.00 level. The surge was caused by the US Federal Reserve rate cut.
On Thursday, the yellow metal's price was expected to test previous high levels. Namely, the 1,515.00 level should be tested.
Economic Calendar Analysis
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
XAU/USD short-term forecast
The yellow metal has no technical resistance, as it pierced all of the technical levels either during the immediate aftermath of the Federal Reserve announcement or on Thursday morning.
In general, the bullion should test the 1,515.00 level, which has provided resistance and kept the metal's price down through October.
If the, 1,515.00 level gets passed, the 1,530.00 should be targeted next. On the other hand, in the case of the 1,515.00 holding, the rate would decline back to the 1,500.00 mark.
Hourly Chart
On the daily candle chart, the commodity price has pierced the lower trend line of the large scale ascending channel pattern. The pattern represents the metal's surge, which has occurred since the start of summer.
It might be the first signal that the surging of the metal is clearly over. Although, the metal has not been reaching new high levels since the start of September.
Daily Chart
Minor short sentiment
On Thursday, 53% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were mostly short – 60% of orders were to sell and 40% to buy.
On Wednesday, 66% of orders were to buy.