The surge of the metal that occurred after confirming the 1,850.00 level as support reached above the 1,895.00 level by the start of Thursday's US trading hours.
In general, the metal's price was expected to test the resistance of the 1,900.00 level, which could force the rate into a consolidation by either trading sideways or retracing back down.
There are no more notable events for the metal this week. However, during Thursday's trading hours the next week's event review is set to be published. The article will be available in the Fundamental Analysis section.
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XAU/USD short-term forecast
The price is approaching the resistance of the 1,900.00 level, which stopped the rate's recovery in November.
Due to the sharp angle of the recent surge, the rate is most likely going to consolidate. It could occur by trading sideways below the 1,900.00 level or declining. In the case of a decline, the rate would look for support In the 1,880.00 level, which provided short lived resistance during Thursday's early trading hours.
On the other hand, a breaking of the 1,900.00 mark could result in the metal's price testing the 1,930.00 level, which kept the rate down in October.
Hourly Chart
On the daily candle chart, the yellow metal has passed the resistance of the 55-day simple moving average, which kept the bullion down since early December. Next resistance on the daily candle chart was the 100-day SMA, which was located at the 1,906.25 level. This SMA could move lower and strengthen the 1,900.00 mark.
In the meantime, a new channel pattern has been added to the chart. Namely, there is a channel up pattern that captures the metal's December recovery.
Daily Candle Chart
Traders remain long
Since the previous Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long. Namely, the sentiment has been unchanged for nine consecutive trading sessions.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 59% to buy the metal.