However, the US Federal Reserve rate hike and press conference resulted in an apparent recovery of the commodity price. By the middle of Thursday's European trading, the price had reached 1,980.00. Economic Calendar Analysis
Next week, the US Core PCE Price Index might impact the financial markets through the strength of the USD. The release is scheduled for 12:30 GMT on Friday.
XAU/USD short-term forecast
A continuation of the recovery is highly likely going to encounter resistance in the 2,000.00 mark. Higher above, note that other round levels could turn into resistance.
On the other hand, a possible decline of the metal's price is set to look for support in the February high and the 50 and 100-hour simple moving averages at 1,960.00. Further below, take into account the 1,950.00 mark and the January high at 1,949.00.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the high level zone of 2020 and 2023. The zone was observed to have started to act as support at the start of the week. However, by mid-week the support zone failed.Daily Candle Chart
Traders are short
On Tuesday, gold traders were bearish, as 60% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 70% to buy.
After the US rate hike, open positions were 57% short and pending orders were 54% to buy.