Despite the passing below the support zone, the price for gold recovered above the zone and resumed to use it as support at the start of Wednesday's US trading. Meanwhile, the recent volatility revealed a channel down pattern, which appears to have guided the price since November 24. Economic Calendar Analysis
This week, the main event will be the release of the US employment data on Friday at 13:30 GMT. The release will consists of the publication of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
Prior to the monthly employment data, on Thursday, at 13:30 GMT the US weekly Unemployment Claims might cause a move.
In addition, take into account the US ISM Services PMI survey results on Friday at 15:00 GMT.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
In the case of the bullion's price surging, it would have to pass the 50 and 100-hour simple moving averages near 1,790.00. Afterwards, the 1,800.00 mark might act as resistance. Above the 1,800.00 level, the 200-hour SMA and the upper trend line of the channel down pattern could keep the metal down.
On the other hand, a decline is highly likely going to find support in the 1,778.60/1,782.70 zone. Below the zone, round price levels could act as support until the price reaches the lower trend line of the channel down pattern.
XAU/USD daily charts review
On the daily candle chart, the metal has passed the trend line, which connects the August, September and November low levels.Meanwhile, the 50, 100 and 200-day simple moving averages are being ignored.
Daily Candle Chart
Traders have set up buy orders
Since Monday, the sentiment on the Swiss Foreign Exchange was 55% bearish, as 55% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 100% to buy the precious metal.
On Wednesday, the situation changed, as 57% of volume was in in long positions. In the meantime, only 60% of orders were set to buy.