The decline of USD boosted gold's recovery. During the early hours of Thursday's trading, the commodity price was heading to the high level zone at 1,984.20/1,987.70, as the 1,980.00 level's resistance was broken. Economic Calendar Analysis
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
XAU/USD short-term forecast
A breaking of the high level zone at 1,984.20/1,987.70 is expected to result in an extension of the ongoing gold's recovery. The surge might be slowed down by the 1,990.00 and 1,995.00 levels, before the price tests the 2,000.00 mark.
In the case of a bounce off from the high level range the price could eventually look for support in the combination of the 50, 100 and 200-hour simple moving averages near 1,965.00.
XAU/USD daily charts review
On the daily candle chart, the metal has found support in the 200-day simple moving average. The moving average has caused a surge, which broke the 50 and 100-day simple moving averages and the 1,955.00/1,965.00 range.Daily Candle Chart
Gold traders go short
On the Swiss Foreign Exchange, traders are 52% bullish on gold, as that proportion of open Gold positions are long.
In the meantime, pending orders in the 1000 point range around the current price are 77% to sell.
After the Fed hike, 51% of traders had short positions and orders were 52% to buy.