Meanwhile, the support of the 50-hour simple moving average managed to hold for only one hour. Economic Calendar Analysis
On Thursday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price Index data is set to be released together with the US Unemployment Claims. Namely, all US pairs and assets are expected to react to the news.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
A decline of the price for hold would have to first pass below the 2,000.00 mark, which is expected to act as support. Further below, note the 100-hour simple moving average near 1,985.00 and the February high level zone at 1,975.00.
However, a resumption of the surge of the price is highly likely going to encounter resistance at 2,020.00 and 2,040.00, before approaching the 2,050.00/2,075.00 zone.
XAU/USD daily charts review
On the daily candle chart, another channel up pattern has been broken. The metal's surge appears to be going parabolic. Meanwhile, note that previous high levels act as support.Daily Candle Chart
Bearish sentiment decreases
On Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bearish, as 62% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 75% to buy the precious metal.
On Tuesday, sentiment was 64% bearish. However, pending orders were 73% to sell.