The yellow metal's price has retreated to the 55-hour SMA, which stopped its decline on Wednesday. By the middle of Thursday's trading session, the SMA had caused a surge.
The metal's price was set to once again test the psychological resistance of round price levels.
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XAU/USD short-term forecast
On Wednesday, the XAU/USD exchange rate reversed south from the upper boundary of the medium-term ascending channel at 1,484.50. During today's morning, the rate was testing the support formed by the 55-hour SMA and the monthly PP at 1,475.51.
If the given support level holds, it is likely that a reversal north could occur in the nearest future. In this case, the exchange rate could re-test the upper channel line.
However, from a theoretical perspective, it is likely that some downside potential could continue to prevail in the market. But it is unlikely that the price for gold could drop lower than the 1,465.00 area due to the support cluster formed by the 100- and 200-hour SMAs, as well the Fibo 23.60%.
Hourly Chart
On the daily candle chart, the commodity price has reached the technical resistance of daily simple moving averages. On Thursday, the 55 and 100-day SMAs were located at 1,487.00.
These levels need to be passed for the price to reach for the 1,500.00 level.
Daily Chart
Sentiment numbers are mixed
On Thursday, on the Swiss Foreign Exchange 56% of open gold position volume was in long positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were set to sell– 57% of orders were to sell and 43% to buy.
Previously, the orders were 52% to sell.