After almost touching the 1,790.00 mark, the yellow metal's price dropped down to 1,760.00. With it, the price pierced the channel up pattern.
In addition, during the decline the commodity removed its overbought pressure, as it retreated down to the 200-hour simple moving average.
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
Take a look at all of the historical reaction tables by clicking on the link below.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate pierced the lower line of the medium-term ascending channel. During Thursday morning, the rate was testing the 55– and 100-hour SMAs in the 1,773.00 area.
If the given moving averages hold, it is likely that some downside potential could prevail in the market. In this case the rate could target the 1,755.00/1,760.00 area.
Meanwhile, note that yellow metal could gain support from the 200-hour SMA near 1,766.00. Thus, gold could consolidate against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the commodity price could soon test the resistance trend line of the 2019 and 2020 high levels above 1,790.00.
In the meantime, take into account that the 1,750.00 is most likely going to provide support.
Daily Candle
Traders set up sell orders
On Thursday, on the Swiss Foreign Exchange the sentiment was bearish, as it was 63% short.
On Wednesday, the sentiment was 66% short.
Meanwhile, in 1000-pip range around the current metal's price the orders were 57% to sell.
Previously, the orders were 85% to buy.