The yellow metal's price reached the support zone that surrounds the 1,680.00 level. This zone provided enough support for the price to consolidate by trading sideways above it. However, on Wednesday morning another attempt to pass it was made.
The near term future scenarios were based upon whether or not the support zone holds. Due to that reason, Tuesday's forecasts remained unchanged.
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the zone of the low levels, provides support, the metal could trade sideways above it and consolidate the drop.
On the other hand, a failure of the low levels to provide support could result in the metal reaching the 1,650.00 level.
In addition, note that the sideways trading could end with a recovery. A potential recovery could reach for the 1,700.00 level, which would be supported by the 55-hour simple moving average.
Hourly Chart
On the daily candle chart, on Tuesday, the support of the 61.80% Fibonacci retracement level of the 2020 high and low levels was passed. It began to provide resistance on Wednesday.
Mewanwhile, the support zone of the March low levels is not made up only of the recent lows. Research the 2020 March high levels and the 2020 April to June low levels. The zone, which is being tested currently, was providing both resistance and support during last year.
Daily Candle Chart
Long sentiment increases
Since Monday, the sentiment on the Swiss Foreign Exchange was bullish, as 68% of open position volume was long. The sentiment grew to 71% long on Wednesday.
Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 72% to buy the metal.