During the decline, the price passed various support levels until gold stopped at the 1,787.10 level. Afterwards, the price retraced to find resistance in the 1,795.00 mark. Economic Calendar Analysis
The most notable event of the week will be the US and Canadian monthly employment data release on Friday at 13:30 GMT.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the price for gold properly recovers, it would first have to pass the resistance of the 1,795.00 level, before aiming at the 1,800.00 mark and the low level zone below it. Afterwards, the 50, 100 and 200-hour simple moving averages might act as resistance near 1,810.00.
However, a further decline of the rate might look for support first in the December 21 and 22 low level zone at 1,785.00/1,786.50. Further below, there is no close by support. Meanwhile, take into account that round price levels could act as support.
XAU/USD daily charts review
The daily candle chart can be used to more clearly explore previous high level zones at 1,830.00 and 1,880.00. Meanwhile, the same rule applies to 2021 low levels.In addition, note that the price was being kept up by the 50, 100 and 200-day simple moving averages since the middle of December. The sharp drop caused by the Fed moved the price below the moving averages.
Daily Candle Chart
Long sentiment grows
On Thursday, the sentiment on the Swiss Foreign Exchange was 56% bullish, as 56% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 84% to buy the precious metal.
On Wednesday, the sentiment was 54% long and pending orders were 52% to sell.