Gold declines below 1,850.00

Source: Dukascopy Bank SA
Since the US Consumer Price Index release volatility decreased, the price for gold has been fluctuating between the 1,850.00 and 1,858.50 level. However, by the middle of Thursday's European trading hours, the price slightly declined, as it reached and found support at 1,845.00.

Economic Calendar Analysis



On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.

To see historical move tables click on the link below.

XAU/USD short-term forecast

A move below the 1,845.00 level could encounter support in the CPI volatility low level at 1,835.00 and the early Wednesday low level at 1,832.40.

Meanwhile, a potential recovery is expected to encounter resistance in 1,850.00 and 1,855.00, before approaching the CPI volatility high level at 1,858.50. In addition, take into account the approaching 100 and 200-hour simple moving averages near 1,860.00 and 1,865.00.

Hourly Chart

XAU/USD daily charts review

On the daily candle chart, the metal's price has passed below the support of the 200-day simple moving average. The SMA managed to shortly act as support during late Tuesday's trading hours.

Daily Candle Chart


Buy orders are gone

On Wednesday, the sentiment on the Swiss Foreign Exchange was 63% bullish. Namely, 63% of open position volume was in long positions.

Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 100% to buy the precious metal.

On Thursday, traders were 62% bullish and pending orders were 57% to sell the metal.

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