The move could be attributed to the publication of good US employment data. Namely, the ADP Non-Farm Employment Change was released at 517,000 instead of the forecast 400,000. However, the data was released at 12:15 GMT not 12:30 GMT. In addition, as the event should have impacted the rate through the value of the USD, other pairs and the USD index can be investigated. There are no sharp moves on other USD pairs or the index.
Due to that reason, the reason of the drop remains unclear.
Economic Calendar Analysis
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT.
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
The decline stopped at the October 18 low level at the 1,760.00 level. Future scenarios were based upon whether the 1,760.00 level provides support.
A passing of the 1,760.00 mark could result in a decline to the 1,745.00/1,750.00 zone. On the other hand, a recovery of the price might be slowed down by the 1,772.50 level, the 50, 100 and 200-hour simple moving averages at 1,786.45/1,792.90 and the 1,795.00 mark.
XAU/USD daily charts review
On the daily candle chart, the yellow metal's price has moved out of the channel up pattern, which guided the price since the middle of September.Daily Candle Chart
Long sentiment grows
On Wednesday, the sentiment on the Swiss Foreign Exchange was 56% bullish, as 56% of open position volume was in long positions.
On Tuesday, sentiment was 53% long.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 81% to buy the precious metal.