The surge of the yellow metal eventually bounced off the 1,640.00 level and declined to the 1,600.00 level.
The decline was seen as a consolidation of the commodity price before resuming its surge.
The macroeconomic data release week will end with the US Final GDP data release on Thursday at 12:30 GMT.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
23.03-27.03 Event Historical Reactions
XAU/USD short-term forecast
It is likely that yellow metal could gain support from the monthly PP at 1,607.96 and continue to appreciate against the US Dollar in the short term. In this case the rate could face the resistance level—the monthly R1 at 1,668.23.
However, if the price for gold fails to exceed the 1,640.00 level, it is likely that the commodity could consolidate against the Greenback in the short run. Also, it is unlikely that bears could prevail, and the rate could decline below the psychological level at 1,560.00.
Hourly Chart
On the daily candle chart, the price has reached the resistance of the weekly R2 simple pivot point at 1,633.61 and left the 55-day simple moving average at 1,582.54.
In the meantime, the rate has been finding support in the monthly PP at 1,607.96.
Daily Chart
Closing of long positions continues
On Monday, the Swiss Foreign Exchange sentiment was 66% long.
By the middle of Tuesday's GMT trading hours, the sentiment was 60% long. Traders had taken profits from the recent surge up to the 1,620.00 level.
On Wednesday, already 58% of open volume was in long positions. The decline in long sentiment had slowed down, but it still continued.