The most important fact to mention in regards to gold is that it has broken the upper trend line of the pattern, which guided it down since early February. This indicates that the decline of the metal could be over and a recovery is starting.
Economic Calendar Analysis
The notable data releases for this pair this week are over. Next week's events are set to be described in the Friday's publication.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Analysts have spotted and added to the chart a channel up pattern, which has guided the price during this week. This week, almost all of USD traded assets and currency pairs have revealed a minor channel pattern, which captures a decline of the USD. The XAU/USD pair is no exception.
In regards to the future, the price should remain in the pattern. However, the metal was still expected to find both resistance and support in round price levels. For example, the 1,740.00 and 1,750.00 are expected to provide resistance. In the meantime, the 1,730.00 level could provide support.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
Daily Candle Chart
Sentiment and orders are unchanged
Since Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 70% of open position volume was long.
Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 84% to buy the metal. The orders had also remained unchanged since Wednesday.