After touching the 1,625.00 level on Tuesday, on Wednesday, the yellow metal's price had returned to trade between the 55 and 100-hour simple moving averages.
As the rate had already broken the 100-hour SMA's support on Tuesday, it was not expected to hold on Wednesday.
Economic Calendar Analysis
During the week there are no notable events that might impact gold. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published.
At the same time, the US Preliminary GDP is scheduled to be released.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
It is likely that the 55-hour moving average could push the price for gold lower to the support formed by the 200-hour SMA near 1,620.00. However, the rate would have to surpass the monthly R1 at 1,628.78.
If the monthly R1 holds, it is likely that yellow metal could consolidate against the US Dollar in the short term. Also, it is unlikely that bulls could prevail, and the rate could exceed the monthly R2 at 1,667.43.
Hourly Chart
On the daily candle chart, the pattern, which is expected to guide the rate during the next couple of months, has been pierced.
Note that its upper border had been tested in this way at the start of the year. It could be the case that the piercing of the upper trend line would not result in a breaking of the pattern.
Daily Chart
Traders are short on gold
On Wednesday, the Swiss Foreign Exchange gold sentiment was 64% short. Namely, 64% of open position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 71% of orders were to buy and 29% to sell.
Previously, the orders were 50% to buy and 50% to sell.