Despite passing technical levels that were located from 1,904.00 to 1,910.00, the yellow metal's price did not surge, as it was expected. Instead, the rate declined back below 1,900.00.
On Thursday morning , the price appeared to be kept down by the resistance of the 55 and 200-hour simple moving averages.
Economic Calendar Analysis
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reversed south from the resistance level formed by the monthly PP at 1,909.25.
Given that yellow metal is pressured by the 55– and 200-hour SMAs in the 1,902.00 area, it is likely that some downside potential could prevail in the market.
Meanwhile, note that the rate could gain support from the 1,890.00. Thus, the price for gold could trade sideways within the following trading session.
Hourly Chart
On the daily candle chart, on Wednesday and Thursday, the rate was fluctuating between two Fibonacci retracement levels.
Resistance was provided by the 38.20% Fibo at 1,916.78, which previously did not manage to provide support.
In the meantime, support was provided by a 23.60% Fibonacci retracement level at 1,879.18. In addition, the Fibo could soon be strengthened by the approaching 100-day SMA.
Daily Candle Chart
Traders are long
Since the previous Wednesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 54% was long.
On Thursday, the sentiment changed, as 61% of volume was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 88% to buy the metal.
The orders were 71% to sell on Wednesday.