The commodity price was expected to end the sideways trading as soon as the support of the hourly simple moving averages approaches from below.
Economic Calendar Analysis
On Thursday, at 12:30 GMT the US Preliminary GDP is scheduled to be published.
XAU/USD short-term forecast
During the previous trading session, gold traded sideways against the US Dollar at the 1,530.00 level. During today's morning, the XAU/USD exchange rate maintained its consolidation.
Note that the exchange rate is supported by the 55-, 100– and 200-hour SMAs, as well the monthly R2 in the 1,511.66/1,523.09 range. Thus, it is unlikely, that bears could prevail in the market in the nearest future.
The yellow metal could continue to trade sideways against the Greenback within the following trading hours. Otherwise, some upside potential could prevail in the market, and the rate could target the 1,555.00 level.
Hourly Chart
On the daily candle chart the sudden surge did not pierce the upper trend line of the ascending channel pattern.
Daily Chart
Short sentiment returns
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Tuesday's London trading hours, short sentiment had returned, as 63% of open position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were strongly bullish – 75% of orders were to buy and 25% to sell.