The yellow metal trades in sudden sharp moves. The most recent move was a surge, which reached the 1,950.00 level that provided resistance.
In theory, the metal could surge as soon as the price is approached by the support of the 55 and 100-hour simple moving averages.
Economic Calendar Analysis
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
It is likely that the price for gold could gain additional support from the 55– and 100-hour SMAs near 1,935.00. This support could push the rate through the resistance of the 1,950.00 mark.
In the meantime, the rate was ignoring the resistance of the 200-hour simple moving averages, as the price bounced around it.
Hourly Chart
On the daily candle chart, the metal has passed the resistance of the 50.00% Fibonacci retracement level at 1,947.16. In theory, the rate should aim at the resistance of the 61.80% Fibonacci retracement level at 1,977.55.
In the meantime, the support of the 55-day simple moving average had approached the metal. It signals that a surge of the price could occur.
Daily Candle Chart
Traders remain long
Since Monday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 60% was long.
The sentiment had shortly slightly changed on Wednesday, as 61% of volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price the orders were 88% to buy.