Above all, on Friday, the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate are set to move the markets.
XAU/USD short-term forecast
By the middle of Thursday's trading, the price recovery was heading to the September highs near 1,730.00. The 1,730.00 level acted as resistance on Tuesday, when the metal made two attempts at passing above it.
A move above the 1,730.00 level could be slowed down by the 1,740.00, 1,750.00 and 1,760.00 levels, before the late August high level at 1,765.10 would be reached.
On the other hand, a decline of the price is set to look for support in the 50-hour SMA near 1,720.00 and the 1,700.00 mark. Note that the 100-hour SMA is expected to strengthen the 1,700.00 mark.
XAU/USD daily charts review
On the daily candle chart, the price has pierced the upper trend line of the 2022 channel down pattern and the 50-day simple moving average near 1,715.00. Higher above, note the 100-day SMA near 1,750.00.Daily Candle Chart
Traders close more long positions
On Wednesday, the sentiment on the Swiss Foreign Exchange was 59% bullish. Namely, 59% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 57% to sell the precious metal.
On Thursday, positions were 57% long and orders were 67% to buy.