After reaching the 1,310.00 level gold prices began a decline, which had reached below the 1,300.00 level by the middle of Thursday's trading session.
In addition, on the Dukascopy Analytics technical charts the pair had no resistance as far as the 1,321.00 level.
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XAU/USD short term forecast
During Wednesday's trading session, the rate surged to the 1,310.00 level as it was predicted. On Thursday morning, the yellow metal dropped to the 1,298.32 mark, passing through the support levels of the 55-hour and the 100-hour simple moving averages.
In regards to the near-term future, most likely, the monthly S1 at 1,295.12 will support gold to trade sideways at the 1,300.00 level for the rest of the trading session.
Besides, the 200-hour simple moving average might also support the yellow metal from the fall.
Hourly Chart
On the daily chart the rate has broken a strong resistance cluster, which is located from 1,290.00 to 1,301.00.Meanwhile, the 55-day simple moving average was located at 1,301.80. It had previously provided both resistance and support. Note that at that level there is impact felt from the technical level.
In regards to further above resistance, the most close by was the monthly pivot point at 1,321.03.
Daily Chart
Short sentiment remains unchanged
Since Wednesday, 57% of the open position volume on the Swiss Foreign Exchange remained short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders were no longer neutral, as 58% of orders were set to buy.