From a technical analysis perspective, the yellow metal's surge was attributed to the approaching support of the 50-hour simple moving average. During the mid-hours of Tuesday's trading, the price bounced off the 2,020.00 mark and confirmed the 2,000.00 level as resistance. Economic Calendar Analysis
On Thursday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price Index data is set to be released together with the US Unemployment Claims. Namely, all US pairs and assets are expected to react to the news.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the commodity price continues to surge, it would have to pass above the 2,020.00 mark, before reaching new high levels. Note that most likely round price levels are set to act as resistance. Eventually, the price could reach the 2020 high level zone at 2,050.00/2,075.00.
On the other hand, a potential decline is highly likely going to find support in the 2,000.00 mark and the 50-hour simple moving average near 1,985.00.
XAU/USD daily charts review
On the daily candle chart, the previous high level zones are observed to be acting as support levels. Meanwhile, the surge is still occurring in a large scale channel up pattern since the early February.Daily Candle Chart
Traders remain bearish
On Monday, the sentiment on the Swiss Foreign Exchange was 66% bearish, as 66% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 75% to sell the precious metal.
On Tuesday, sentiment was 64% bearish. However, pending orders were 73% to sell.