On Thursday, the yellow metal's price ended trading just above the 1,710.00 level, as the rate attempted a surge. However, by mid-day the bullion still remained below 1,740.00 mark.
In the near term future, it was expected that the metal's price could surge to the 1,740.00 level and test its resistance.
On Thursday, all attention is expected to be set on the weekly US Unemployment Claims. During the last weeks this announcement has been revealing shocking data, as during a two week period almost ten million US workers claimed unemployment benefits. The unemployment claims were previously ignored as they had stopped causing market reactions.
XAU/USD short-term forecast
It is likely that yellow metal could gain support from the 55-hour SMA near 1,720.00 and appreciate against the US Dollar in the short term.
However, if the exchange rate fails to surpass the 1,740.00 level, it is likely that gold could continue to trade sideways against the Greenback in the short run.
Meanwhile, it is unlikely that bears could prevail in the market, and the price for gold could decline below the 200-hour SMA near 1,672.00.
Hourly Chart
The daily candle chart has been replaced with the weekly candle chart. On the chart the high levels of 2012 and 2011 have been added. These levels could provide resistance.
In the meantime, take into account that the surge started in the middle of March, when the metal's price found support in the 1,450.00 level and the 55-week simple moving average.
Weekly Chart
Short sentiment remains unchanged
Since the middle of Wednesday's trading, the Swiss Foreign Exchange sentiment was 53% short. Namely, 53% of open gold position volume was in short positions.