The yellow metal's price has declined below the hourly simple moving averages.
Moreover, on Wednesday, gold almost touched the 1,400.00 level, as it was outlaid in the hourly chart's analysis second scenario on Tuesday.
Gold this week was affected only by one macroeconomic data release.
Namely, the US Retail Sales and Core Retail Sales that were published on Tuesday at 12:30 GMT
In general, wait for the next Economic Calendar Overview on Monday to see next upcoming events. On the other hand, take a look at other this week's events described in this week's video.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate declined to the 1,400.00 level. During Wednesday's morning, the rate tested the resistance formed by the 55-, 100– and 200-hour SMAs, located in the 1,407.04/1,411.32 range.
If the given resistance holds, it is expected, that the price for gold could go downwards. In this case, the rate could target the lower boundary of the short-term ascending channel located circa 1,395.00.
On the other hand, the exchange rate could trade sideways, trying to surpass the given moving averages.
Hourly Chart
On the daily chart, it can be observed that the metal still remains below the August 2013 high level, which stopped the metal's massive June surge.
Daily Chart
Traders close short positions
Since the middle of Friday, 67% of open gold position volume on the Swiss Foreign Exchange was in short positions.
The sentiment changed on Wednesday, as during the second half of the day's trading 62% of open position volume was short.
Meanwhile, in the 1000 base point range around the current metal's price the orders were long - 66% of orders were set to buy. Previously, 53% of orders were set to buy.