The XAU/USD exchange rate resumed to trade within the short-term descending channel.
From a theoretical point if view, it is likely that the rate could trade downwards within the given trend.
Economic Calendar Analysis
On Thursday, there will be the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
For more information read the weekly event review article by clicking on the link below.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate broke the upper line of the short-term descending channel. During Thursday morning, the rate resumed to trade within the given level.
From a theoretical point of view, it is likely that some downside potential could prevail in the market, and the rate could target the lower channel line located circa 1,790.00.
Meanwhile, note that yellow metal could gain support from the 200-hour SMA near 1,800.00. Thus, it is likely that gold could consolidate against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, gold is likely to gain support at the 1,796.00 level.
Meanwhile, note that the rate could be pressured by a trend line was drawn by connecting the 2019 and 2020 high levels.
Daily Candle Chart
Short sentiment grows
On Thursday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 60% was short.
Meanwhile, in the 1000-pip range around the current metal's price the orders were 72% to buy.