At mid-day on Wednesday, the support zone held and a recovery approached the combination of the pattern's upper trend line and the 50-hour simple moving average. Economic Calendar Analysis
On Thursday, at 14:00 GMT, the US ISM Manufacturing Purchasing Managers Index could cause a market adjustment.
The top event of the week is scheduled for Friday, at 12:30 GMT. At that time, the US Unemployment Rate, Non-farm Employment Change and the Average Hourly Earnings are set to be published.
XAU/USD short-term forecast
In the case of the commodity reaching above 1,725.00, the resistance of the channel pattern and the 50-hour simple moving average, the metal's recovery could be slowed down by the combination of the 1,740.00 and 1,745.00 levels and the 100 and 200-hour SMAs.
However, a decline of the price below 1,710.00 is expected to look for support in the 1,700.00 mark, prior to approaching the lower trend line of the channel down pattern.
XAU/USD daily charts review
On the daily candle chart, the price appears to have bounced off the May and June low level zone, which has turned from support into resistance. In regards to the future, note the 2021 and 2022 low level zone at 1,675.00/1,680.00.On August 24, it was spotted that the price for gold has been encountering resistance in the 2021 October, November and December low levels, which are being strengthened by the 50-day simple moving average.
Daily Candle Chart
Traders are bullish on gold
On Wednesday, the sentiment on the Swiss Foreign Exchange was 67% bullish. Namely, 67% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 53% to sell the precious metal.
On Tuesday, the orders were 66% long and pending orders were balanced. 50% of orders were to buy and sell.