On Friday, the US Core PCE Price Index is scheduled to be published at 12:30 GMT. This inflation measure is watched by the US Federal Reserve when setting their policy.
XAU/USD short-term forecast
If the price for gold continues to decline, the 1,655.00 level and the 100-hour simple moving average are the first levels, which could act as support. Further below, the 1,650.00 mark is being strengthened by the 200-hour simple moving average.
On the other hand, a recovery of the commodity price is set to encounter resistance in the 1,670.00 level, before reaching the 1,678.75/1,683.85 range, where the early October high level zone is located at.
XAU/USD daily charts review
On the daily candle chart, the price found support in the September low level near 1,615.00. Currently, note that the 50-day SMA is strengthening resistance at 1,685.00. Meanwhile, the 100-day SMA is located near 1,716.00.Daily Candle Chart
Traders are long
On Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 61% to buy the precious metal.
On Thursday, the sentiment was 61% long and pending orders were 56% to buy.