The surge of the yellow metal's price reached the resistance of the 1,865.00 mark at mid-day on Wednesday. This round price level provided resistance, which forced the metal into a decline.
The following decline reached the previous resistance zone that surrounds the 1,850.00 level and confirmed it as support. During early US trading hours, the metal was resuming its surge.
On Wednesday, the day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
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
It is likely that yellow metal could gain support from the 1,850.00 mark and trade upwards against the US Dollar in the nearest future. The rate could target the 1,880.00/1,890.00 range.
In the meantime, it is unlikely that bears could prevail in the market, and the price for gold could decline below the support area formed by the 55-, 100– and 200-hour SMAs in the 1,840.00/1,845.00 range.
Hourly Chart
On the daily candle chart, the yellow metal is trading between the 55 and 200-day simple moving averages. The 55-day SMA was providing resistance near 1,875.00 and the 200-day SMA provided support at 1,812.80.
In theory, as the rate is still located in the borders of a channel down pattern, the metal should once again test the resistance of the 55-day simple moving average. This technical level should be passed before advancing onto the 1,900.00 mark.
Daily Candle Chart
Traders remain long
Since the previous Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long.
Namely, the sentiment has been unchanged for eight consecutive trading sessions.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 55% to sell the metal.