The yellow metal's price found support in the 200-hour simple moving average near 1.565.00. This event resulted in a surge, which on Wednesday reached for the 1,575.50 level.
At that level, the commodity price would test the resistance of the 55-hour simple moving average, which by mid-day was located at 1,575.50.
Economic Calendar Analysis
On Wednesday, the US Federal Funds Rate is scheduled to be published at 19:00 GMT. Note that the largest moves occurred during rate cuts. This time, no rate cut is expected.
On Thursday, the US Advance GDP publication at 13:30 GMT is set to occur.
The week's event historical data tables have been published. Click on the link below to read the article.
On Tuesday, the XAU/USD exchange rate declined to the support formed by the 200-hour SMA at 1,564.00. During today's morning, the rate reversed north.
Note that yellow metal faced the resistance level formed by the monthly R2 and the 100-hour SMA at 1,570.61. Thus, a reversal south could occur, and the rate could re-test the lower boundary of the medium-term ascending channel located circa 1,562.00.
However, if the given resistance level does not hold, it is likely that gold could appreciate against the US Dollar in the short run. Note that the price for gold would have to surpass the 55-hour SMA at 1,576.06.
Hourly Chart
On the daily candle chart, the metal has no technical support as low as the 55 and 100-day simple moving averages that are located near the 1,500.00 level. If the support levels of the hourly chart fail, eventually the price could reach for the daily SMAs.
Daily Chart
Traders are neutral on gold
Since Monday, 52% of all open gold positions on the Swiss Foreign Exchange were long. The sentiment had been near neutral throughout the last week.
On Wednesday, the sentiment was 53% short. No changes had taken place.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish– 57% of orders were to buy and 43% to sell.
The orders were 73% to buy on Tuesday.