During the three hour surge, the bullion broke above the resistance of the 200-hour SMA and the 1,800.00/1,805.00 resistance zone. The event signals that the price for gold might end sideways trading. However, by the middle of Wednesday's trading, the price had reached below the 200-hour SMA and the 1,800.00 level.
Economic Calendar Analysis
On Thursday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data sets are set to be released to the public.
Note that at the same time the US Unemployment Claims are scheduled to be 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 yellow metal declines, support could be provided by the 55 and 100-hour SMAs near 1,795.50. However, these levels failed to impact the price throughout this week. Due to that reason, it is a high possibility that the support zone below 1,785.00 could once again be reache
On the other hand, a surge of gold would test the 200-hour SMA and the 1,800.00/1,805.00 zone before reaching new high levels like the summer high zone at 1,830.00/1,835.00.
XAU/USD daily charts review
On the daily candle chart, the summer high level zone can be observed. The price has bounced off it for a fourth time since the start of July.Meanwhile, note the round price levels, which have been providing support throughout summer. Namely, the 1,780.00, 1,760.00 and 1,720.00 levels have been acting as support levels.
Daily Candle Chart
Traders are long
Since Tuesday, the sentiment on the Swiss Foreign Exchange was 54% bullish, as 54% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 71% to buy the precious metal.