The decline of the yellow metal's price from recent historical high levels eventually exceeded 10%. Namely, the metal declined from 2,075.93 to 1,863.50.
During Wednesday's early trading hours, the commodity price reached the 1,950.00 mark, which stopped a recovery of the metal.
Economic Calendar Analysis
On Wednesday, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate continued to depreciate actively. During Wednesday morning, the rate reversed north from the 1,880.00 level.
It is likely that yellow metal could gain support from the monthly PP at 1,907.07 and recover in the short run. However, it is unlikely that the price for gold could exceed 1,983.00/2,014.00 due to the resistance of the 55-, 100– and 200-hour SMAs.
On the other hand, it is likely that the exchange rate could trade sideways around the monthly PP within the following trading session.
Hourly Chart
On the daily candle chart, the Fibonacci retracement levels are added to the recent late July and August sharp surge. Note that the levels have been providing both resistance and support to the commodity price.
Daily Candle Chart
Traders remain short
On Wednesday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 55% was short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 54% to sell.
Previously, the orders were 75% to buy, and, on Monday, they were 82% to buy.