On Wednesday, it was stated that a possible metal's surge would stop at the 1,740.00 level. It occurred and resulted in a decline, which by the middle of Thursday's trading had retreated to technical supports at 1,720.00.
Future forecasts were based upon what would happen at the 1,720.00 price level.
Economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a move below normal volatility.
XAU/USD short-term forecast
It is likely that some upside potential could prevail in the market, as gold could gain support from the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 1,707.00/1,722.34 area. In this case the rate could target the 1,745.00/1,755.00 range.
However, if the exchange rate fails to exceed the 1,740.00 level, it is likely that the yellow metal could consolidate against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, it can be spotted that a surge in May was stopped by the psychological resistance of the 1,750.00 mark. This level could provide resistance in the case of the 1,740.00 failing to keep the price down.
Daily Candle
Bullish sentiment drops
Since last Thursday, on the Swiss Foreign Exchange 58% of open position volume was in long positions.
On Wednesday, the sentiment changed, as 57% of volume was long.
This Thursday, the sentiment dropped to 53% of open volume being in long positions.
Meanwhile, in 1000 pip range around the current metal's price the orders were balanced, as 50% were to sell and 50% were to buy.
The orders were 59% to sell on Wednesday.