At the end of Tuesday's trading, the yellow metal's price bounced off the resistance of the 1,900.00 level, which was strengthened by the 200-hour simple moving average.
On Wednesday morning, the rate was declining and was expected to soon reach the support of the 55-hour simple moving average at 1,880.00.
Economic Calendar Analysis
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move.
On the same day, at 12:30 GMT the US are publishing GDP data.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
On Wednesday morning, the price of the metal was heading to the 1,880.00 level, where it would meet with the support of the 55-hour simple moving average.
In the case of the SMA providing support, the price could surge and test the resistance of the 200-hour SMA at 1,895.00 and afterwards the 1,900.00 level.
On the other hand, the 55-hour SMA could fail. In this case, the rate would look for support in the 100-hour simple moving average at 1,872.50 level.
Hourly Chart
On the daily candle chart, the rate has bounced off the support of the 100-day simple moving average, which strengthened the support of the 1,850.00 level.
In the meantime, it was spotted that the 23.60% Fibonacci retracement level at 1,879.18 was providing support.
Daily Candle Chart
Traders are long on gold
On Wednesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 56% was long.
On Tuesday, the long sentiment decreased to 55%.
Meanwhile, in the 1000-pip range around the metal's price the orders were 89% to buy the metal.
The orders were 63% to buy on Tuesday.