On Wednesday, the metal's price returned to trade near the 1,700.00 mark. Namely, the rate shortly reached above the 1,705.00 level.
In the case of the pair properly breaking the resistance of the 1,700.00 level, the pair could reach for the previous high level of 1,740.00.
On Thursday, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.
Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created large moves.
Last but not least, a notable reaction could be created by the US Durable Goods orders on Friday at 12:30 GMT.
XAU/USD short-term forecast
During Wednesday morning, the rate was testing the resistance level—the monthly R1 at 1,704.29.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future. In this case the rate could gain support from the 55, 100 and 200-hour SMAs that were located from 1,686.70 to 1,697.80.
On the other hand, in the case of a surge, the rate would face no resistance as high as the previous historical high level of 1,740.00.
Hourly Chart
On the Daily candle chart once can observe that the round price levels have been forcing the rate into changing its direction. Take a look at the 1,750.00, 1,700.00 and 1,650.00 levels, as they provided both support and resistance since March.
Daily Candle
Sentiment remains unchanged
Since Tuesday, the Swiss Foreign Exchange sentiment was 54% short. Namely, 54% of open gold position volume was in short positions.