On Thursday, the bullion retraced back to the previously pierced upper trend line of the channel down pattern. It appeared by mid-day that the price had resumed to respect the channel's borders.
Economic Calendar Analysis
On Thursday, at the same time as the US GDP, the US weekly Unemployment Claims could also impact the USD.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results.
XAU/USD short-term forecast
In the case of a surge, the bullion would test the upper trend line of the channel down pattern and the 55-hour simple moving average near 1,735.00. Above the 1,735.00 level, the 100-hour SMA could provide resistance near 1,740.00.
Meanwhile, a potential decline of the commodity price would find support in round price levels, as it had done throughout this week.
XAU/USD daily charts review
On the daily candle chart, note that the bullion has been in a decline since the start of September, when it bounced off the summer high zone at 1,830.00. The decline has been occurring in a channel down pattern, which is aimed at the August low level at 1,685.00.Daily Candle Chart
Traders are long on gold
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 70% bullish, as 70% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 56% to buy the precious metal.