Meanwhile, on Wednesday, the markets were awaiting the US Federal Reserve rate hike at 18:00 GMT, which is set to reveal the future direction of the US Dollar. Note that the publication and the follow up press conference are top fundamental events, which affect the supply of the US Dollar. Namely, as information about the future will be revealed, gold will adjust sharply until the news are processed by the whole world. Economic Calendar Analysis
The top event of the month is scheduled for Wednesday's 18:00 GMT. The US Federal Reserve will publish its Economic Projections and Statement. The central bank is expected to hike interest rates. The question remains among market participants whether a 0.50% or 0.75% hike occurs.
Note that after the official announcement a press conference is scheduled for 18:30 GMT.
XAU/USD short-term forecast
A resumption of the decline of the commodity price would look for support in the 1,810.00 and 1,800.00 levels, before aiming at the May low levels near 1,790.00.
If the price for gold recovers, the commodity price would have to clearly pass above 1,835.00. Higher above, note the 1,850.00 mark and the 50, 100 and 200-hour simple moving averages at 1,840.00/1,850.00.
XAU/USD daily charts review
On the daily candle chart, the price has encountered resistance in the form of the 50-day simple moving average at 1,880.00.Daily Candle Chart
Traders are long on gold
On Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 55% to buy the precious metal.
On Tuesday, traders were 62% long and pending orders were balanced, as 50% were to buy and to sell.