As previously forecast, the price for gold ended fluctuating sideways. It did so with a decline and fulfilled one of the scenarios outlaid on Wednesday. Namely, the bullion reached the support of the 1,825.00 mark and the 200-hour simple moving average.
By the start of Thursday's US trading hours, the commodity price had bounced off the support zone for a second time and began a surge, which was heading to the 1,850.00 level.
The week is set to end with the US Producers Price Index at 13:30 GMT on Friday.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
In the near term future, the metal's price was heading to the resistance of the 1,850.00 price mark. This level was also set to be strengthened by the 55 and 100-hour simple moving averages, which were located at 1,850.25 and 1,854.00.
If these resistance levels hold, the pair could decline to the 200-hour simple moving average at 1,830.00. In the case of the SMA failing to provide support, the 1,825.00 mark's support would be tested.
On the other hand, if the 1,850.00 would be broken, the rate should test the resistance of the 23.60% Fibonacci retracement level at 1,860.60.
Hourly Chart
On the daily candle chart, the yellow metal has bounced off the resistance of the 55-day simple moving average. Moreover, it is retracing down after surging from the support of a large scale channel down pattern near the 1,765.00 level.
In theory, the metal should once again test the resistance of the 55-day simple moving average. This technical level should be passed before advancing onto the 1,900.00 mark.
In the meantime note that the metal is finding additional support in the 38.20% Fibonacci retracement of the 2020 high and low levels at 1,837.43.
Daily Candle Chart
Traders remain long
Since Wednesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long. This sentiment was reached on Tuesday when traders took profits from the surge.
The sentiment was 66% long on Monday.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 69% to buy the metal.