In general, the metal was expected to continue to trade sideways until the Federal Reserve announcement of today.
Economic Calendar Analysis
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time.
Also, the US Crude Oil Inventories data release at 14:30 GMT could have an impact on the price for gold.
XAU/USD short-term forecast
Given that gold is supported by the 55-, 100– and 200-hour SMAs, currently located circa 1,501.00, it is likely that the price for the commodity could go up. A possible upside target is the psychological level at 1,510.00.
On the other hand, yellow metal could continue to trade sideways against the US Dollar in the nearest future. Also, it is unlikely that the rate could decline lower than 1,488.00 due to the support of the lower line of the short-term ascending channel.
Hourly Chart
On the daily candle chart, the price for gold remains near the lower trend line of an ascending channel pattern. In accordance with the pattern, a surge should occur soon.
Moreover, the price was about to be supported by the 55-day simple moving average, which could cause a surge. In the meantime, there are no resistance levels to the metal as far as 1,583.98.
Daily Chart
Decline of short sentiment ends
Short sentiment had been declining on the Swiss Foreign Exchange since Friday. Namely, from 63% of volume being in short positions to 53% on Tuesday.
The decline ended on Wednesday, as 53% of open gold position volume was short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 71% of orders were to buy and 29% to sell.