The drop of the yellow metal's price stopped at the 1,870.00 level, which provided support and caused a price surge. The surge reached the resistance of the 1,885.00 level.
By mid-day on Thursday, the commodity has been trading sideways between the 1,875.00 and 1,885.00 levels.
Economic Calendar Analysis
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. The US Advance GDP and the Unemployment Claims would be released at that time. However, recently both of them have not caused notable moves
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The price is expected to trade sideways between the 1,875.00 and 1,885.00 levels until it would be approached by the resistance of the hourly simple moving averages. Most likely, the 55-hour SMA would reach the price first.
Afterwards, in theory the SMA should push the price down. A potential decline would then test the support of the 1,870.00 mark.
Hourly Chart
On the daily candle chart, the yellow metal has passed the support of the 100-day SMA.
In the meantime, the rate has pierced the support of the 23.60% Fibonacci retracement level at 1,879.18.
Daily Candle Chart
Traders set up sell orders
Since Wednesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 60% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 61% to sell the metal.