In the meantime, note that the 1,740.00/1,760.00 zone acted as support during a couple of periods in 2021. Namely, it acted as support in the early summer and early winter. Economic Calendar Analysis
Watch out for the Wednesday's Federal Reserve's FOMC Meeting Minutes at 18:00 GMT.
On Thursday, the ADP Non-farm Employment Change might impact the markets through the value of the US Dollar.
On Friday, the United States are scheduled to release their monthly employment data at 12:30 GMT. Expect the data release to consist of the Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
XAU/USD short-term forecast
If gold continues to lose value, compared to the US Dollar, the price could eventually reach the 1,700.00 level, which, despite being pierced, acted as support in early 2021. Afterwards, the 2021 low level at 1,670.50 might stop a decline.
On the other hand, a potential decline might encounter resistance in the 1,771.30/1,772.90 zone. The zone acted as resistance to the price since the second part of Tuesday's trading.
XAU/USD daily charts review
On the daily candle chart, the previously mentioned support zones and historical low levels can be better observed, as they are marked.Daily Candle Chart
Traders are long
On Tuesday, the sentiment on the Swiss Foreign Exchange was 70% bullish. Namely, 71% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 74% to buy the precious metal.
On Wednesday, traders were still 70% bullish and pending orders were balanced. 50% of orders were to buy and to sell the metal.