By mid-Wednesday, the price remained above the 200-hour SMA, as the 50-hour SMA approached from above and acted as resistance. Namely, the price is expected to get squeezed in between the SMAs near 1,775.00.
Economic Calendar Analysis
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
XAU/USD short-term forecast
A break out to the upside is expected to encounter resistance in the combination of the 100-hour simple moving average and the 1,785.20/1,786.30 zone. Higher above, the high level range at 1,803.30/1,809.90 is set to act as resistance.
Meanwhile, a break out downwards could look for support in the 1,764.00/1,766.15 range, prior to approaching the previous low levels at 1,744.75 and 1,739.40.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the resistance of the 200-day simple moving average and is testing the 1,787.05/1,808.15 zone. The zone acted as support in the first half of 2022 and as resistance in August.On December 5, the 200-day simple moving average had turned into support, as the resistance zone had caused a decline back to 1765.00.
Daily Candle Chart
Traders increase long positions
On Wednesday, the sentiment on the Swiss Foreign Exchange was 60% bullish. Namely, 60% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 59% to sell the precious metal.
On Tuesday, the open positions were 57% long and orders were 53% to buy.