Throughout Tuesday, the 1,900.00 level was providing the yellow metal with support. During the morning hours of Wednesday's GMT trading, the price dropped below the 1,900.00 level.
In the near term future, it appeared that the price would decline, as it has finished consolidating by trading sideways.
Economic Calendar Analysis
On Wednesday, at 13:45 the US PMIs will be released.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
During Wednesday morning, the rate dropped to 1,880.00.
From the one hand, it is likely that a reversal north could occur in the nearest future. In this case it is unlikely that the price for gold could exceed the resistance formed by the 55-, 100– and 200-hour SMAs in the 1,912.00/1,942.00 area.
On the other hand, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the monthly S1, is located at the 1,862.47 mark.
Hourly Chart
On the daily candle chart, the metal has confirmed the 38.20% Fibonacci retracement level as a resistance. In the meantime, the support of the 23.60% Fibo at the 1,879.18 level had begun to keep the rate up on Wednesday.
Meanwhile, take into account that the price is being approached by the support of the 100-day simple moving average, which was located near the 1,940.00 mark.
Daily Candle Chart
Traders stick to long positions
On Tuesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 60% was long.
On Wednesday, the sentiment was 59% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 54% to sell.