On Friday, take into account the US Markit Services and Manufacturing Purchasing Managers Index release at 13:45 GMT. The rate might be impacted through the USD value reacting to the publication.
XAU/USD short-term forecast
In the case of a continuous recovery of the commodity price, the metal might encounter resistance in the combination of the 1,730.00 mark, the 1,732.10 level and the 200-hour simple moving average. Higher above, take into account the 1,743.85/1,752.30 zone.
However, a resumption of the decline of the commodity price might look for support in the 1,697.40/1,700.70 zone, before approaching the 2021 low level at 1,670.50.
XAU/USD daily charts review
On the daily candle chart, historical support zones and low levels can be observed, as they are marked.Daily Candle Chart
Traders are long
On Monday, the sentiment on the Swiss Foreign Exchange was 70% bullish. Namely, 70% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 68% to buy the precious metal.
On Tuesday, the open positions were 69% long and pending orders were 62% to buy.