However, in a couple of hours the markets realized that the additional hikes by the Bank of England would result in a deeper UK economic decline in the further future. Namely, the International Monetary Fund made comments and explained how reckless the UK central bank and government were. Due to that reason, the situation, asset prices and currency exchange rates retraced back to Tuesday's levels.
On the gold price charts the event occurred as a spike upwards above the 1,660.00 level. By the start of Thursday's European trading, the price had declined to the support of the 50 and 100-hour simple moving averages and the 1,640.00 level. Economic Calendar Analysis
On Friday, at 12:30 GMT the Core Personal Consumption Expenditure Price Index is bound to make an impact, as the head of the Federal Reserve Jerome Powell revealed last week that he is watching this index as a measure for inflation not the Consumer Price Index.
XAU/USD short-term forecast
A move of the price below 1,640.00 is highly likely set to look for support in the 1,630.00, 1,620 and 1,615.00 levels.
On the other hand, a recovery of the commodity is expected to encounter some resistance in the 200-hour simple moving average near 1,655.00 and the Wednesday's high at 1,662.75.
XAU/USD daily charts review
On the daily candle chart, the price has passed below the 2021 and 2022 low level zone at 1,675.00/1,680.00. On September 19 it was observed that the previous support zone has turned into resistance.Daily Candle Chart
Long sentiment increases
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 54% to sell the precious metal.
On Thursday, positions were 65% long and orders were 55% to buy.