At mid-day on Wednesday, the price for gold reached above the 1,850.00 mark. The surge was possible due to the rate being supported by the 55 and 200-hour simple moving averages, which provided technical support.
In the near term future, the commodity price was expected to test the resistance of a 23.60% Fibonacci retracement level at 1,860.00.
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published.
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 55– and 200-hour moving averages near 1,835.00. Thus, bulls could prevail in the market in the short run. Note that the rate would have to exceed the Fibo 23.60% at 1,860.59.
If the predetermined resistance level holds, the exchange rate could bounce off. If the given support holds, gold could continue to trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the metal faces the resistance of the 55 and 200-day simple moving averages, which were located, respectively, at 1,851.90 and 1,855.16.
These levels have to be passed first, before the rate tests the 1,860.00 mark.
Daily Candle Chart
Traders are long
On Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 64% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 80% to buy the metal.