After another attempt to pass the 1,745.00 price level, the yellow metal dropped.
By the middle of Wednesday's trading hours, the commodity price had touched the 1,715.00 level.
On Wednesday, June 3, two macroeconomic events from the US are expected: the ADP Non-Farm Employment Change at 12:15 GMT and the ISM Non-manufacturing PMI at 14:00 GMT.
The week will end with the US data set release on Friday 12:30 GMT.
XAU/USD short-term forecast
Given that yellow metal is pressured by the 55-, 100– and 200-hour moving averages in the 1,730.00 area. Thus, some downside potential could prevail in the market.
On the other hand, it is likely yellow metal could trade sideways against the US Dollar in the 1,720.00 area within the following trading session.
Meanwhile, it is unlikely that bulls could prevail, and the price for gold could exceed the psychological level at 1,745.00.
Hourly Chart
On the daily candle chart, note that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line.
Meanwhile, the daily simple moving averages remain below the commodity price and below the 1,700.00 mark.
Daily Candle
Long sentiment increases
Despite the decline of the commodity price, traders have become more bullish on the metal.
On Wednesday, on the Swiss Foreign Exchange 55% of open position volume was in long positions.
Previously, during Tuesday's trading, 54% of volume was long.
In addition, in 1000 pip range around the current metal's price, 59% of set up pending orders were set to buy the metal.