This week, there is only one notable scheduled event, which could impact the US Dollar and the financial markets. On Thursday, a minor move could occur due to the Philadelphia Federal Reserve Manufacturing Index release at 12:30 GMT.
XAU/USD short-term forecast
An extension of the decline might look for support in round price levels, prior to reaching the September low levels near 1,615.00.
On the other hand, a recovery of the commodity price would face resistance in the 1,640.00 level. Higher above, note the upper trend line of a channel down pattern and the 50 and 100-hour simple moving averages near 1,650.00.
XAU/USD daily charts review
On the daily candle chart, the price might look for support in the September low level near 1,615.00.Daily Candle Chart
Traders are long
On Wednesday, the sentiment on the Swiss Foreign Exchange was 66% bullish. Namely, 66% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 76% to buy the precious metal.
On Tuesday, traders were 63% long and pending orders were 71% to sell.