Gold jumped on Tuesday, as this review was being written. The main reason for the surge was the fall of the US Dollar caused by EU-US trade dispute.
Namely, the US retaliated against French digital tax by setting tariffs. The event was followed by an EU announcement that retaliation is upcoming.
Meanwhile, from a technical perspective, the metal had no resistance as high as 1,500.00.
On Wednesday, there are two US events that the media will pay attention to. The ADP Non-farm Employment Change at 13:15 GMT and the US ISM Non-Manufacturing PMI at 15:00 GMT.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate.
Meanwhile, the week's scheduled event historical data and reaction tables have been published. Click on the link below to read the article.
XAU/USD short-term forecast
The metal's price is in the middle of a sharp surge, which has no technical resistance as high as 1,505.00, where the first monthly resistance of the simple pivot points is located at.
In the meantime, note that the 1,500.00 level is most likely going to provide psychological resistance that could stop the surge.
In addition, the surge might get also slowed down by other round price levels like 1,480.00 and 1,490.00.
Hourly Chart
On the daily candle chart, the commodity price is heading to the technical resistance of daily simple moving averages. The 55 and 100-day SMAs had met at the 1,485.92 level.
Previously, it was written on Monday that the meeting of the SMAs is a buy signal. Namely, the 55-day SMA indicated that the medium scale decline has ended.
Daily Chart
Some traders take profits
Since Thursday, 62% of open gold position volume was in long positions.
On Tuesday, the situation changed and 59% of open position volume was in long positions. It could be assumed that some traders had taken profits.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were set to sell– 56% of orders were to sell and 44% to buy.
Previously, since Friday the orders were 65% to buy.
The orders revealed that the traders that wanted to open long positions, had done so. In addition, the ones still holding long positions, had close by sell orders, which most likely are both - take profits and stop losses.