Although, immediately after the drop, the metal recovered back to the 1,500.00 level, from where it was surging at the middle of Wednesday's London trading hours.
Economic Calendar Analysis
There are no notable macroeconomic data releases scheduled for Wednesday.
On Thursday, the US Retail Sales are expected to cause a move at 12:30 GMT. Note that this release will consist of two numbers.
The Core Retail Sales do not include auto sales. People buy cars on debt, paying the same amount of money each month and continue to buy the needed transportation no matter what. The elimination of auto sales improves retail sales as a measure of economic growth.
XAU/USD short-term forecast
On Wednesday, the yellow metal's price began a recovery after a consolidating sideways trading period. Namely, at 10:00 GMT the commodity price began to test the resistance of the 1,510.00 level.
If the 1,510.00 level gets passed, the commodity price would reach up to test the monthly pivot point at 1,521.59.
On the other hand, the 1,510.00 might hold for a longer period, as it did before it was broken on Monday.
Hourly Chart
The massive scale pattern of the weekly candle chart has been broken. The metal continues to surge. As this pattern has been broken, there is no technical resistance to the metal.
Meanwhile, note that the daily simple moving averages are located below the 1,300.00 level. It is a clear indicator of how much the metal is overbought.
However, the move is purely fundamental. Namely, it is a run to safety. Due to that reason the indicators have a small impact on the price.
Weekly Chart
Traders remain short on gold
Since the middle of Tuesday's London trading session the sentiment was 71% short. The traders, which suffered losses previously, have recovered some of their losses.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bullish- 59% were set to buy, and 41% of orders were set to sell.
Previously, the orders were 67% to buy.