Eventually, the yellow metal's price bounced off the resistance of the 1,920.00 level. The event was followed by a decline to the 1,875.00 mark.
On Wednesday morning, the commodity price was recovering and approached the 1,900.00 level.
Economic Calendar Analysis
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
It is likely that yellow metal could face the resistance provided by the 55– and 100-hour SMAs near 1,900.00, therefore, the rate could go downwards in the short term.
Meanwhile, it is unlikely that bulls could prevail in the market, and the price for gold could exceed the resistance level—the monthly PP, located at the 1,909.25 mark.
Hourly Chart
On the daily candle chart, the rate has been testing the resistance of the 38.20% Fibonacci retracement level at 1,916.78.
After a couple of failed tests, the rate retreated to the support of the 1,879.18 level where a 23.60% Fibonacci retracement level was located at.
In the meantime, it was spotted that the price bounced off the resistance of a trend line that connects the August and mid-September high levels.
Daily Candle Chart
Long sentiment finally changes
Since last Wednesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 56% was long.
It changed this Wednesday, as the sentiment was 54% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 72% to buy the metal.
The orders were 84% to buy on Tuesday.