A new high level has been reached by the yellow metal. Namely, it has reached the resistance of a monthly pivot point at 1,861.50.
On Wednesday, the commodity price was consolidating its gains and made attempts to pass the resistance.
Economic Calendar Analysis
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the US Manufacturing and Service PMIs survey results are going to be released at 13:45 GMT.
For more information read the weekly event review article by clicking on the link below.
XAU/USD short-term forecast
During Wednesday morning, the rate tested the monthly R2 at 1,861.52.
Note that yellow metal trades far above the 55-, 100– and 200-hour moving averages. Thus, it is likely that the rate is the overbought area, and some downside potential could prevail in the market.
On the other hand, it is likely that gold could trade sideways against the US Dollar near the given resistance level within the following trading session.
Hourly Chart
On the daily candle chart, gold has broken the trend line that connects the 2019 and 2020 high levels. Next resistance on this chart is the historical high level at 1,912.40.
Daily Candle Chart
Short sentiment grows
Since Monday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 60% was short.
The sentiment changed on Wednesday, as it became 65% short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 79% to buy.