On Wednesday morning, the XAU/USD exchange rate declined below 1,710.00.
It is likely that yellow metal could consolidate against the US Dollar in the short run.
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate tumbled to the 1,710.00 level. During Wednesday morning, the rate declined below the given level.
From the one hand, it is likely that some downside potential could prevail in the market. In this case the rate could target the 1,690.00/1,700.00 area.
From the other hand, it is likely that yellow metal could consolidate against the US Dollar in the 1,705.00/1,710.00 range.
Also, it is unlikely that some upside potential could prevail in the market, and the price for gold could exceed the 1,722.00/1,735.35 area due to the resistance formed by the 55-, 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, it was spotted on Wednesday that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line. This trend line provided resistance to the metal on last Monday.
Daily Candle
Traders go long on gold
On Wednesday, trader open position volume on the Swiss Foreign Exchange was 56% long.