Yesterday, the XAU/USD exchange rate consolidated in the 1,720.00 area.
Given that the rate is still squeezed by 55- and 200-hour SMAs, it is likely that the rate could consolidate.
Traditionally, the first week of the month is busy on the economic calendar.
On Monday, June 1, the Institute for Supply Management will release the US ISM Manufacturing PMI survey results at 14:00 GMT.
On Wednesday, June 3, two macroeconomic events from the US are expected: the ADP Non-Farm Employment Change at 12:15 GMT and the ISM Non-manufacturing PMI at 14:00 GMT.
The week will end with the US data set release on Friday 12:30 GMT.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate traded sideways in the 1,720.00 area. During Friday morning, the rate was testing the 200-hour SMA near 1,730.00.
If the given moving average holds, it is likely that a reversal south could occur in the nearest future. Note that the rate could gain support from the 55-hour SMA near 1,715.00.
If the given moving average holds, it is likely that the rate could consolidate. If the given support does not hold, it is likely that the price for gold could target the psychological level at 1,700.00.
Hourly Chart
On the daily candle chart, it was spotted on Wednesday that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line. This trend line provided resistance to the metal on last Monday.
Daily Candle
Traders go long on gold
Since Thursday, trader open position volume on the Swiss Foreign Exchange was 54% long.