After trading sideways around the 1,750.00 level, the yellow metal's price declined.
On Thursday, the decline reached the 1,731.75 level, where it found support and began a recovery.
This week, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT. It could affect gold prices through the strength of the US Dollar.
XAU/USD short-term forecast
On Wednesday, the XAU/USD exchange rate consolidated at 1,750.00. During today's morning, the rate declined below 1,740.00.
From a theoretical perspective, it is likely that the rate could re-test the lower pattern line in the 1,725.00 area in the nearest future.
If the given pattern holds, it is likely that a reversal north could follow. Note that the price for gold could face the resistance formed by the 55– and 100-hour SMAs near 1,743.00.
Otherwise, it is likely that the rate could breach the given pattern south and target the psychological level at 1,700.00.
Hourly Chart
On the daily candle chart, it was spotted on Wednesday that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line. This trend line provided resistance to the metal on Monday.
Daily Candle
Traders are neutral on gold
Since Tuesday, the position volume was balanced. 50% of volume was short and the other 50% were long.
On Thursday, the sentiment was 51% long.