On Thursday, the top event of the week will take place. The United States Consumer Price Index is scheduled to be published at 12:30 GMT.
On Friday, at 12:30 GMT, the US Retail Sales data could also impact the financial markets.
XAU/USD short-term forecast
A recovery is expected to find resistance in the 1.675.00 and 1,680.00 levels, before the Tuesday's high is tested. In addition, take into account the 100 and 200-hour simple moving averages near.
In the case of a commodity price decline, the 1,657.20/1,662.50 would have to be passed, prior to the price reaching the 1,650.00 level and the support zone above 1,640.00
XAU/USD daily charts review
On the daily candle chart, the price pierced the upper trend line of the 2022 channel down pattern and the 50-day simple moving average near 1,700.00. Higher above, note the 100-day SMA near 1,740.00.Daily Candle Chart
Traders are long with buy orders
On Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 53% to buy the precious metal.
On Thursday, the positions were 61% long and orders were 56% to buy.