The support of the zone near the 1,680.00 level eventually caused a surge.
It resulted in a surge, which by the middle of Thursday's trading hours had reached the 1,720.00 level. In the meantime, note the resistance cluster above the 1,721.00 level.
The March 23 to 30 low level zone together with the 200-hour simple moving average had turned into a resistance.
The current week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released.
Next Monday, at 15:00 GMT, minor USD moves could be created by the publication of the US ISM Non-Manufacturing Purchasing Managers Indice.
On Wednesday, at 1900 GMT, the US Federal Open Markets Committee is set to publish its Meeting Minutes.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the resistance zone does not hold, the commodity price could reach for the resistance of the zone near 1,745.00, which kept the metal down during the middle of March.
On the other hand, if the resistance holds, a decline should occur. A potential decline could step by step reach the support at 1,680.00.
Hourly Chart
On the daily chart, the support zone of the March low levels is not made up only of the recent lows. Research the 2020 March high levels and the 2020 April to June low levels. The zone, which is being tested currently, was providing both resistance and support during last year.
Daily Candle Chart
Sentiment stays unchanged
Since Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 71% 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 66% to sell the metal.