On Wednesday, the XAU/USD exchange rate revealed a medium-term ascending channel, as it tested its lower line at 1,715.00.
From a theoretical perspective, it is likely that some upside potential could prevail in the market.
In regards to the metal's price during current week, there are a couple of scheduled macroeconomic data releases that could impact it.
Today, the US Unemployment Claims at 12:30 GMT will be discussed by most market participants. However, this release usually causes moves below normal volatility.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate revealed a medium-term ascending channel. During Thursday morning, the rate was trading at 1,730.00.
Note that yellow metal is supported by the 55– and 100-hour SMAs near 1,725.00. Thus, some upside potential could prevail in the market, and the rate could target the resistance area in 1,740.00/1,745.00.
On the other hand, it is likely that gold could trade sideways against the US Dollar in the 1,730.00 area within the following trading session.
Also, it is unlikely that a breakout south from the channel could occur, as the rate could gain support from the 200-hour SMA near 1,720.00.
Hourly Chart
On the daily candle chart, it can be spotted that a surge in May was stopped by the psychological resistance of the 1,750.00 mark. This level could provide resistance in the case of the 1,740.00 failing to keep the price down.
Daily Candle
Traders remain neutral
On Wednesday, on the Swiss Foreign Exchange the sentiment was neutral, as it was balanced. Half of volume was short and the second half was long.
On Thursday, the sentiment was 52% short.
Meanwhile, in 1000-pip range around the current metal's price the orders were set to sell, as 56% were bearish orders.