Gold's price has retraced upwards to the resistance of the 55-hour simple moving average near the 1,275.00 level.
Although, the price was still expected to decline in the near term future.
Late on Wednesday, the top event of the month will occur. The US FOMC Meeting Minutes will be released at 18:00 GMT. On the EUR/USD it has caused moves from 10.2 to 29.1 pips since October 2018.
The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only five to 18 pips.
XAU/USD short-term forecast
On Wednesday, gold's price was testing the resistance of the 55-hour SMA, which had caught up to the commodity price.
If the price passes above the 55-hour simple moving average, it should next test the 1,280.00 level, which should provide psychological resistance, and the 100-hour simple moving average.
On the other hand, the rate could be pushed down through the support of the 38.20% Fibonacci retracement level at 1,273.68. In that case scenario the rate would once more drop to the 1,270.00 level.
Meanwhile, take into account that the Federal Reserve announcement at 18:00 GMT might crash all technical USD charts.
Hourly Chart
The daily candle chart has been upgraded. The main update to mention is the fact that the previous descending pattern was junior to a larger channel down pattern.Due to that reason the rate is expected to gradually reach the upper trend line of the dominant pattern.
However, it can occur in various ways – by surging, trading sideways or declining.
Daily Chart
Swiss traders short gold
Since Thursday, 68% of all total open gold position volume on the Swiss Foreign Exchange was in short positions.
A majority of traders was profiting from the decline since that day.
Meanwhile, in the 1000 base point range around the current price 62% of pending orders were set to buy the metal.
Most likely these orders were the stop losses of the short positions.