After shortly reaching above the 1,850.00 level, the metal's price retreated to continue to trade just above the support of the 1,835.00 level and the 200-hour simple moving average.
In the near term future, additional support could be provided by the approaching 100-hour simple moving average. It could provide the needed support for the rate to test the 23.60% Fibonacci retracement level at 1,860.00.
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published.
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XAU/USD short-term forecast
It is likely that yellow metal could gain support from the 100– and 200-hour moving averages in the 1,830.00 area. Thus, some upside potential could prevail in the market, and the rate could target the 1,870.00/1,880.00 range.
In the meantime, note that the exchange rate could face the resistance level—the Fibo 23.60% at 1,860.59. If the predetermined level holds, gold could continue to trade sideways against the US Dollar in the short run.
Hourly Chart
On the daily candle chart, the metal faces the resistance of the 55 and 200-day simple moving averages, which were located, respectively, at 1,852.27 and 1,855.88.
These levels have to be passed first, before the rate tests the 1,860.00 mark.
Daily Candle Chart
Traders are long
On Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 64% of open position volume was long.
On Thursday, the sentiment was 63% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 76% to buy the metal.