On Thursday, at 12:30 GMT, the US Dollar will react to the combination of the US Consumer Price Index and the weekly Unemployment Claims data. Markets will be looking at this release as the top one of the week.
XAU/USD short-term forecast
A passing above the 1,880.00 level is expected to result in the metal's price aiming at the 1,895.00 level and the 1,900.00 mark.
On the other hand, note that the each breaking of a resistance zone occurred, as the metal was supported by a hourly simple moving average. The most recent move occurred, as the 50-hour SMA caught up. During the second part of Wednesday's trading, the metal had no close by SMA. Due to this reason, the price could remain near 1,875.00 or decline to 1,865.00.
XAU/USD daily charts review
On the daily candle chart, note the broad large scale channel down pattern. The pattern's support line has been broken. Meanwhile, zoom out to see the 2023 low levels and the support zone near 1,800.00.Daily Candle Chart
Gold traders take profits
On Monday, the Swiss Foreign Exchange, traders were 75% bullish on gold, as that proportion of open Gold positions were long.
In the meantime, pending orders in the 1000 point range around the current price are 59% to buy.
By mid-Tuesday, traders were 74% long and orders were 57% to buy. It appears that a majority of Dukascopy traders were gaining form the surge.
On Wednesday, open positions were 71% long and orders were 66% to sell. It appears that traders are taking profits.