On Friday, take into account the US Markit Services and Manufacturing Purchasing Managers Index release at 13:45 GMT. The rate might be impacted through the USD value reacting to the publication.
XAU/USD short-term forecast
In the case of the commodity price continuing to decline, gold could eventually reach the 2021 low level at 1,670.50. However, take into account that round price levels might once again act as both support and resistance levels.
On the other hand, a recovery of the bullion is expected to encounter resistance in the 1,697.40/1,700.70 zone. Higher above, the 50 and 100-hour simple moving averages near 1,705.00 might act as resistance.
XAU/USD daily charts review
On the daily candle chart, historical support zones and low levels can be observed, as they are marked. Below the 2021 low level note the supporting trend line of the 2022 descending channel pattern.Daily Candle Chart
Long sentiment slightly decreases
On Wednesday, the sentiment on the Swiss Foreign Exchange was 69% bullish. Namely, 69% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 77% to buy the precious metal.
On Thursday, the open positions were 66% long and pending orders were 87% to buy.