The 1,485.00 level provided the yellow metal's price with support. By the middle of Wednesday's trading the metal's price had reached the 1,495.00 level.
In regards to the near term future, the metal was expected to trade sideways until the US Federal Reserve makes a rate statement at 18:00 GMT.
Economic Calendar Analysis
This week gold is bound to be affected by US data and an expected rate cut.
On Wednesday, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT.
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate traded sideways around the psychological level at 1,490.00. During Wednesday morning, the rate was testing the resistance formed by the 55– and 200-hour SMAs at 1,493.42.
Given that yellow metal is also pressured by the 100-hour moving average at 1,497.15, it is likely that some downside potential could prevail in the market. In this case the rate could re-test the psychological level at 1,485.00.
On the other hand, gold could consolidate against the US Dollar within the following trading session. If the given resistance does not hold, the price for gold could target the psychological level at 1,505.00.
Hourly Chart
On the daily candle chart, the commodity price has pierced the lower trend line of the large scale ascending channel pattern. The pattern represents the metal's surge, which has occurred since the start of summer.
It might be the first signal that the surging of the metal is clearly over. Although, the metal has not been reaching new high levels since the start of September.
Daily Chart
Traders are short on gold
On Wednesday, 51% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were mostly bullish – 66% of orders were to buy and 34% to sell.
On Tuesday, 71% of orders were to buy.