On Friday, the US Flash Manufacturing and Services PMIs could cause an impact on the US Dollar.
XAU/USD short-term forecast
A continuation of the ongoing decline might look for support in the February and January high levels at 1,960.00 and 1,949.00.
Meanwhile, any potential recovery is set to face resistance in the 2,000.00/2,010.00 range and the 50, 100 and 200-hour simple moving averages near the range.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the high level zone of 2020 and 2023. The zone appears to be no longer capable of impacting the commodity price, as round price levels have more impact.Next target for the surge is the 2020 August and 2022 March high level zone.
Daily Candle Chart
Read More: Technical Analysis
Traders are still short
On Wednesday, gold traders were bearish, as 56% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 85% to buy.