On Friday, note the US ISM Manufacturing PMI at 14:00 GMT.
XAU/USD short-term forecast
If the commodity price continues to decline, the bullion might look for support in the 1,800.00 level. Further below, note the May low level at 1,786.65.
On the other hand, a recovery of the metal could result in the previous support levels becoming resistance. In addition, note the 50, 100 and 200-hour simple moving averages.
XAU/USD daily charts review
On the daily candle chart, the price has encountered resistance in the form of the 50 and 200-day simple moving averages.Meanwhile, support appeared to be found in the lower trend line of a May and June channel up pattern.
Daily Candle Chart
Traders are long
On Wednesday, the sentiment on the Swiss Foreign Exchange was 66% bullish. Namely, 66% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 81% to buy the precious metal.
On Thursday, the open positions were 68% long and orders were 56% to buy.