On Wednesday, the yellow metal's price ended moving sideways, as it dropped to the support of the 1,685.00 level.
On Thursday, the price bounced off the support of the 1,685.00 and began to test the resistance of the 55 and 100-hour simple moving averages near 1,697.00.
There are no notable events scheduled for Thursday that could affect the exchange rate.
On Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
Next week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
XAU/USD short-term forecast
If the 55 and 100-hour moving averages hold, it is likely that a reversal south could occur, and the price for gold could decline below the 1,685.00 level within the following trading session.
However, if the given level holds, it is likely that the yellow metal could trade sideways against the US Dollar in the nearest future.
Also, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the 200-hour SMA near 1,702.00.
Hourly Chart
On the daily candle chart, the metal is overbought, as its price is far above the daily simple moving averages. The most close by 55-day SMA was located at the 1,642.00 mark.
Daily Candle
Long sentiment slowly grows
On Tuesday, the Swiss Foreign Exchange sentiment was 55% long. Namely, 55% of open position volume was in long positions.
By mid-day on Wednesday, the sentiment was 56% long, and, on Thursday, 58% of volume was long.