In a sharp move just after mid-day on Tuesday, the support of the 200-hour simple moving average was passed. However, almost immediately the rate found support in the 1,725.00 level.
By the middle of Wednesday's European trading hours, the metal's price had retraced back up to the 1,735.00 level.
On Wednesday, at 13:45 GMT the US Services and Manufacturing PMIS could cause moves.
On Thursday, the US Final GDP is set to be released 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
In the near term future, the recovery of the metal was expected to continue. It was expected to do so due to previously the 55 and 100-hour SMAs failing to provide resistance. It was more likely that the recovery could end above the 1,740.00 level or even Monday's high level above the 1,745.00 mark.
On the other hand, in the case of a sudden decline the price could look for support in the 1,730.00 and 1,725.00 levels.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, on Monday, the March high levels were connected and a parallel line was set at the March low level. This revealed a channel up pattern, which could have a significant role in the future.
Daily Candle Chart
Long sentiment remains intact
On Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 66% of open position volume was long.
Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 54% to buy the metal.