Namely, the ECB revealed that it is hiking interest rates, but has invented a new tool, which basically amounts to a government bond buying bail out tool. Namely, inflation in the second largest economy of the world is set to continue. The news in turn caused a surge of safe haven assets like gold. Economic Calendar Analysis
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
During the late hours of Thursday's trading and on Friday morning, the rate was testing the resistance of the 1,720.00 level. Meanwhile, support appeared to be found at 1,710.00.
If the commodity price surges above 1,720.00, take into account the 1,732.10 level and the zone, which surrounds the 1,750.00 mark. On the other hand, a decline below 1,710.00 could look for support in the 50 and 100-hour simple moving averages near 1,705.00 and 1,708.00, prior to reaching the 1,697.40/1,700.70 zone.
XAU/USD daily charts review
On the daily candle chart, historical support zones and low levels can be observed, as they are marked. Below the 2021 low level note the supporting trend line of the 2022 descending channel pattern.Daily Candle Chart
Long sentiment slightly decreases
On Thursday, the sentiment on the Swiss Foreign Exchange was 68% bullish. Namely, 68% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 57% to buy the precious metal.
On Thursday, the open positions were 66% long and pending orders were 87% to buy.