On Thursday, the US quarterly Preliminary GDP data at 12:30 GMT is set to confirm or deny whether the United States have entered a recession. A recession is defined by two consecutive quarters of decline in the Gross Domestic Product.
XAU/USD short-term forecast
If the metal declines, it is expected to look for support in the 200-hour simple moving average and the previous high and low level zone at 1,832.00/1,836.00. Further below, note the last week's support zone near 1,810.00.
However, a potential recovery of the commodity price would have to reach above the 1,850.00 mark and the 50 and 100-hour simple moving averages near 1,855.00, before approaching this week's resistance levels at 1,865.00 and 1,870.00.
XAU/USD daily charts review
On the daily candle chart, the price has broken the resistance of the 200-day simple moving average, which strengthened the 1,850.00 mark.Meanwhile, note that the metal confirmed the location of the lower trend line of the channel down pattern below the 1,800.00 level. In theory, the price should approach the zone that surrounds the 1,900.00 level.
Daily Candle Chart
Traders set up sell orders
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 64% bullish. Namely, 64% of open position volume was in long positions.
Meanwhile, on Wednesday, in the 1000-pip range around the metal's price, pending trade orders were 53% to buy the precious metal.
On Thursday, the orders were 65% to sell.