The metal's decline did not reach the low level of 1,900.00. Instead, the 1,910.00 mark provided support and caused a retracement back up to the 1,940.00 level.
By the middle of Wednesday's GMT trading hours, the price had bounced off the 1,940.00 mark and retreated below 1,925.00.
Economic Calendar Analysis
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
On Tuesday, the XAU/USD exchange rate touched the 1,910.00 level. During today's morning, the price was testing the 55– and 100-hour SMAs near 1,930.00.
If the given resistance holds, it is likely that some downside potential could prevail in the market in the short term, and the price for gold could re-test the 1,910.00 mark.
If the predetermined resistance holds, it is likely that the exchange rate could try to exceed the 200-hour moving average near 1,947.00.
Hourly Chart
On the daily candle chart, the metal was finding support and resistance in the Fibonacci retreacement levels at 1,947.16 and 1,916.78.
In the meantime, the support of the 55-day simple moving average had approached the metal. It signals that a surge of the price could occur.
Daily Candle Chart
Traders remain long
Since Monday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 60% was long.
The sentiment slightly changed on Wednesday, as 61% of volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price the orders were 88% to buy.