During Wednesday's morning, the XAU/USD exchange rate was testing the upper boundary of the short-term descending channel at 1,338.00.
If the given channel holds, it is likely, that a reversal south could occur within the following trading hours. Otherwise, gold could maintain its growth.
Today, the US CPI data release will happen at 12:30 GMT.
On Friday, June 14, the US Retail Sales data will be released at 12:30 GMT.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reversed north from the lower boundary of the short-term descending channel at 1,321.57. During Wednesday's morning, the rate was testing the upper channel line at 1,337.87.
From a theoretical perspective, it is likely, that a reversal south could occur in the nearest future. However, note, that gold has to surpass the support cluster formed by the 55– and 100–hour SMAs, as well the monthly R2 in the 1,328.49/1,333.67 range.
However, if the given channel does not hold, the price for gold could continue to increase. In this case, the exchange rate could target the psychological level the at 1,345.00 mark.
Hourly Chart
On the daily chart it can be observed that the rate is supported by the monthly R1 at 1,319.79.
If the given support holds, it is expected, that the rate could re-test the psychological level at 1,245.00 in the nearest future.
Daily Chart
Traders remain short
On Wednesday, 60% of all positions on the Swiss Foreign Exchange were short.
Meanwhile, in the 1000 base point range around the current metal's price 55% of all pending orders on the Swiss Foreign Exchange were set to buy. Previously, 59% of the orders were long.