The bullion's price has continued to surge, as at the start of US trading hours the metal's price had touched the 1,845.00 level.
It appeared that the bullion was consolidating, as it traded between the 1,835.00 and 1,845.00 levels.
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
From the one hand, it is likely that some upside potential could prevail in the market. In this case the price for gold could face the resistance level formed by the Fibo 23.60% of the 2018 low and the 2020 high levels at 1,860.59.
From the other hand, a reversal south could occur in the nearest future. Note that yellow metal could gain support from the 55-, 100– and 200-hour SMAs in the 1,804.00/1,817.00 range.
Hourly Chart
On the daily candle chart, the yellow metal is recovering after bouncing off the support of the large scale channel down pattern. On Thursday, the price had passed the 38.20% Fibonacci retracement level of the 2020 low and high levels at 1,837.43.
The next resistance on this chart was the 55-day simple moving average, which was located at 1,882.29.
Daily Candle Chart
Sentiment changes
On Thursday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 68% was long.
On Wednesday, the sentiment was 67% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 52% to buy the metal.