At mid-day on Thursday, the price for gold jumped and passed the resistance of the hourly simple moving averages.
In the near term future, the price was expected to continue to surge and test previous high levels.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
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
At mid-day on Thursday, the commodity price was expected to test the resistance of the 23.60% Fibonacci retracement level at 1,860.59. Note that the 1,860.00 mark was providing psychological resistance.
In the case of this resistance holding, the price could retrace back down and look for support in the 55, 100 and 200-hour simple moving averages that were located from 1,850.50 to 1,846.60.
On the other hand, if the resistance fails, the yellow metal would first test the December 25 high level near 1,867.00 and the December 21 high at 1,875.00.
Hourly Chart
On the daily candle chart, the metal has started to ignore the 55 and 200-day simple moving averages, which were both passed as resistance and support levels. In the meantime, the metal was being approached by the 100-day SMA near 1,880.60.
Meanwhile, on Wednesday the price was supported by a 38.20% Fibonacci retracement level at 1,837.43.
Daily Candle Chart
Traders remain long on gold
Since Monday, the sentiment on the Swiss Foreign Exchange was bullish, as 58% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 70% to buy the metal.