The yellow metal found support in the 1,735.00 level and surged. At mid-day on Thursday, the commodity price was testing the resistance zone, which was located just below the 1,750.00 mark.
Note that this is the second attempt being made during this week's trading. In general, the future forecasts still remain upon whether or not the resistance zone holds.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar.
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 case of the metal passing the resistance of the 1,750.00 level, the pair could test the March high levels above the 1,755.00 mark.
On the other hand, a decline would look for support first in the 55, 100 and 200-hour simple moving averages near 1,740.00.
Hourly Chart
On the daily chart, the rate has been reached by the resistance of the 55-day simple moving average. The SMA has started to strengthen the resistance of the 50.00% Fibonacci retracement level of the 2020 low and high levels at 1,763.74.
Daily Candle Chart
Traders are long
Since Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 65% of open position volume was long.
Note that the gold sentiment is largely bullish at all times due to long term holders. It is quite rare for it to be below 70%.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 66% to buy the metal.