The metal was set to face resistance at that level. The level on its own provided psychological resistance. In addition to that, the 55, 100 and 200-hour simple moving averages were located at 1,500.00.
Economic Calendar Analysis
There are no more events scheduled for this week, which might impact the price of gold. On Friday, a review of the next week's economic calendar will be posted.
XAU/USD short-term forecast
On Wednesday, the XAU/USD exchange rate re-tested the lower boundary of the short-term ascending channel at 1,488.30. During today's morning, the rate was testing the resistance formed by the 55-, 100– and 200-hour SMAs circa 1,500.00.
If the given moving averages hold, it is likely that a reversal south could occur in the nearest future, and gold could re-test the lower channel line. If the given trend holds, it is likely the rate could consolidate in the short term.
If the given moving averages do not hold, yellow metal could appreciate against the Greenback in the nearest future. A possible upside target is the psychological level at 1,510.00.
Hourly Chart
On the daily candle chart, the price for gold has pierced the lower trend line of the ascending channel pattern. It is a clear signal that the surge of the metal might have ended.
Meanwhile, the support of the 55-day simple moving average was approaching the commodity price from below, near the 1,475.00 level.
Daily Chart
Decline of short sentiment ends
Short sentiment had been declining on the Swiss Foreign Exchange since Friday. Namely, from 63% of volume being in short positions to 53% on Tuesday.
The decline ended on Wednesday, as 53% of open gold position volume was short. By the middle of Thursday's London session, the sentiment had not changed.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were neutral – 53% of orders were to buy and 47% to sell.
Previously, 71% of orders were set to buy.