The yellow metal has been trading sideways between 1,870.00 and 1,890.00 since the coronavirus vaccine caused drop.
However, on Wednesday the commodity price was being approached by the resistance of the 55-hour simple moving average.
On Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims.
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
Given that yellow metal is pressured by the 55-, 100– and 200-hour moving averages in the 1,890.00/1,914.00 range, it is likely that some downside potential could prevail in the market.
In the meantime, note that the exchange rate could gain support at the 1,870.00 mark. Thus, gold could continue to trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the yellow metal has passed the support of the 55 and 100-day SMAs and the Fibonacci retracement levels, which impacted the price since August.
In the meantime, note that the 1,850.00 level provided the metal with support in late September. However, at that time a reversal could have occurred due to the additional support of the 100-day SMA, which strengthened the 1,850.00 mark.
Daily Candle Chart
Traders remain long on Gold
On Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 58% was long.
On Wednesday, 59% of volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 52% to buy the metal.
The orders were 70% to buy on Tuesday.