On Friday, watch the Japanese Yen during the Asian session. The Bank of Japan is expected to announce its monetary policy. Despite the BoJ Policy Rate being forecast to remain unchanged, markets might move due to comments from the central bankers.
The BoJ does not give a predetermined time for its announcements, as it wants to avoid unnecessary speculation from market participants.
XAU/USD short-term forecast
In the case of a surge of the price above 2,600.00, there will be no previously notable levels to watch, as the price will book new all-time highs. However, it is clear that the previous trend of round price levels impacting the metal will remain.
A potential decline of the yellow metal is set to look for support in the 50 and 100-hour simple moving averages and the 2,570.00 and 2,560.00 levels, before reaching the 2,550.00 mark.
XAU/USD daily charts review
On the daily candle chart, the metal found support in the 50 and 100-day simple moving averages, which have been the cause of the resumed surge of the price.Most recently, after a long period of consolidation, the metal has broken out of the consolidation rate to the upside.
Daily Candle Chart
Traders remain short
On Thursday, 73% of volume was in short positions.
Meanwhile, in the 1000 point range around the latest price, the pending orders were 67% to sell the metal.
On Monday, traders were 72% short and orders were 64% to buy.