On Wednesday, the yellow metal fluctuated between the 1,702.00 and 1,712.00 levels, where it was influenced by a monthly pivot point and hourly simple moving averages.
In general, the price was consolidating before a break out up or down. Both scenarios were possible and traders would look for signals, which one becomes reality.
On Wednesday, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
On Friday, the US ISM Manufacturing PMI is scheduled to be published at 14:00 GMT.
XAU/USD short-term forecast
On Tuesday, the XAU/USD exchange rate tried to surpass the resistance formed by the 55– and 100-hour SMAs near 1,715.00. During today's morning, the rate was testing the support formed by the 200-hour SMA and the monthly R1 at 1,705.00.
If the given support holds, it is likely that gold could surpass the given resistance and reach the psychological level at 1,725.00.
However, if the given resistance holds, it is likely that yellow metal could trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the metal's price has passed the support of the rising wedge pattern. In theory, the metal should drop.
However, the price is kept up by the 1,700.00 level. In addition, a decline could find support in 1,650.00.
Daily Candle
Traders are neutral on gol
On Tuesday, the Swiss Foreign Exchange sentiment was 52% short. Namely, 52% of open position volume was in bearish positions.
On Wednesday, the sentiment became perfectly neutral, as 50% of open position volume was long and short.