The price has passed the February low level of 1,785.00. Afterwards, the commodity dropped to the 1,770.00 level, where it found support and began a retracement back up.
In the meantime, the currency exchange metal's price has revealed a medium scale descending wedge pattern.
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
The XAU/USD exchange rate has revealed a medium-term falling wedge pattern.
From a theoretical point of view, it is likely that the exchange rate could trade upwards within the predetermined pattern in the short term. The rate could target the 200-hour SMA near 1,820.00.
Meanwhile, note that yellow metal is pressured by the 55– and 100-hour SMAs in the 1,794.30/1,806.40 range. Thus, the price for gold could decline along the lower pattern line.
Hourly Chart
On the daily candle chart, the falling wedge pattern can be better observed. It captures the moves of the commodity price since January 10.
Meanwhile, note that the closest by support on this chart was the November low level of 1,765.30 and a 50.00% Fibonacci retracement level at 1,763.75.
Daily Candle Chart
Long sentiment grows slowly
On Tuesday, the sentiment on the Swiss Foreign Exchange was bullish, as 66% of open position volume was long.
On Wednesday, the sentiment was 67% long. By the middle of Thursday's trading, the sentiment was 68% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 77% to buy the metal. The orders had not changed since Tuesday.