As forecast, the recovery of the yellow metal's price reached the 1,700.00 level. The rate bounced off this price level after making two attempts to reach above it.
As the review was created, the metal ended trading sideways below the 1,700.00 level and plummeted to the support of the 1,675.00 mark.
On Thursday, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.
Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created large moves.
Last but not least, a notable reaction could be created by the US Durable Goods orders on Friday at 12:30 GMT.
XAU/USD short-term forecast
On Tuesday, the yellow metal's price reached the support of the 1,675.00 level, which kept the rate up on Monday and Friday.
If the support of the 1,675.00 level holds, the rate could trade sideways between the support and the resistance of the 55 and 200-hour simple moving averages near the 1,690.00 level.
On the other hand, if the support fails to hold, the price could drop down to the psychological support of the 1,650.00 mark.
Hourly Chart
On the Daily candle chart once can observe that the round price levels have been forcing the rate into changing its direction. Take a look at the 1,750.00, 1,700.00 and 1,650.00 levels, as they provided both support and resistance since March.
Daily Candle
Traders are short on gold
On Monday, the Swiss Foreign Exchange sentiment was 56% short. Namely, 56% of open gold position volume was in short positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 54% short.