On Thursday, watch out for the US Producer Price Index publication at 12:30 GMT. In addition, at the same time the US weekly Unemployment Claims numbers will be out.
XAU/USD short-term forecast
A breaking of the channel and the 2,050.00 mark would most likely result in a surge. A potential surge might be slowed down by the 2,060.00 and 2,080.00 levels. The 2,080.00 level is part of the 2020 and 2022 high level zones for the commodity price.
However, in the case of a decline of the price support is set to be provided by the combination of the lower trend line of the channel, the 2,030.00 mark and the combination of the 50 and 100-hour simple moving averages. Below these levels, note the 200-hour simple moving average near 2,015.00 and the 2,000.00/2,010.00 range.
XAU/USD daily charts review
On the daily candle chart, the metal has bounced off the 2020 and 2022 high level zone. Meanwhile, the price is being approached by the 50 and 100-day simple moving average.Daily Candle Chart
Traders are short
Before the CPI release, gold traders were slightly short, as 54% of open positions were short.
Meanwhile, pending trade orders in the 1000 point range around the current price were 74% to buy the metal.
After the event, the positions were 56% short and orders were balanced.