As it was speculated on Tuesday, the yellow metal was impacted by round price levels before reaching the 200-hour simple moving average. Namely, the 1,710.00 and 1,720.00 levels provided the commodity price with both support and resistance.
In the meantime, on Wednesday, the price was being approached by the mentioned SMA.
On Wednesday, the US Consumer Price Index data could cause a minor move on USD assets 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
In the case of the 200-hour SMA providing resistance, the commodity price would aim at the strong support cluster near 1,700.00. At that level the 55 and 100-hour simple moving averages are strengthening the psychological round price level. However, note that the support of the 1,710.00 would have to be passed first, before reaching the 1,700.00 level.
If the 200-hour SMA fails, the metal should test the resistance of the 1,720.00 level. If this level fails, the metal would most likely aim at the 1,730.00 level.
Hourly Chart
On the daily candle chart, the metal pierced the support of the 61.80% Fibonacci retracement level at 1,690.05. Due to that reason, it was no longer expected to impact the price.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
Daily Candle Chart
Traders are long on gold
On Tuesday, the sentiment on the Swiss Foreign Exchange was bullish, as 72% of open position volume was long.
On Wednesday, 70% of volume was long. Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 84% to buy the metal.