From the US Dollar's side, the markets could react on Thursday at 12:30 GMT to the publication of the US monthly Retail Sales data and weekly Unemployment Claims.
XAU/USD short-term forecast
A potential further decline of the commodity price would have to pass below the 2,640.00 level and the combination of the 50 and 200-hour simple moving averages. Further below, note the 100-hour simple moving average and the 2,625.00 level. These levels could act as support, before the rate approaches the 2,600.00 mark.
On the other hand, a recovery of the metal would have to break the 2,670.00 mark and the 2,685.00 level. If these levels fail, the metal might reach the 2,700.00 level.
XAU/USD daily charts review
On the daily candle chart, the metal is consolidating after a big surge. The emtal could find support in the 2,600.00 and 2,550.00 levels and the ascending 50-day simple moving average. In addition, note the lower trend line of the channel up pattern.Daily Candle Chart
Traders remain short
On Wednesday, 63% of volume was in short positions.
Meanwhile, in the 1000 point range around the latest price, the pending orders were 62% to sell the metal.
On Monday, traders were 64% short. At the same time, the pending orders were 50% to buy and sell.