During Thursday's trading, the metal encountered resistance in the 1,795.00 level, before retracing to the zone, which appeared to have turned into support.
Economic Calendar Analysis
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
XAU/USD short-term forecast
A continuation of the surge of the commodity price could encounter resistance in the 1,800.00 level and the 1,803.30/1,809.90 range.
However, a decline is set to look for support in the 50, 100 and 200-hour simple moving averages near 1,775.00/1,780.00. Further below, 1,764.00/1,766.15 zone might once again stop a decline.
XAU/USD daily charts review
On the daily candle chart, the 200-day simple moving average remains as support. Meanwhile, price still faces the 1,787.05/1,808.15 resistance zone.Daily Candle Chart
Traders remain long
On Wednesday, the sentiment on the Swiss Foreign Exchange was 60% bullish. Namely, 60% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 59% to sell the precious metal.
On Thursday, the open positions were 60% long and orders were 69% to sell.