The announcement caused a sharp drop of the yellow metal's price. In the aftermath of a minor retracement back up on Wednesday, on Thursday, the price resumed its decline. By the middle of the day, the price had reached the support of the 1,800.00 mark. The 1,800.00 provided resistance in April and May.
Economic Calendar Analysis
No more events are expected to impact the price of gold during this week. Next week's analysis will be published in the Friday's Trading Idea.
Click on the link below to find out more about the data releases of other currency exchange rates.
XAU/USD short-term forecast
In the case that the 1,800.00 level provides support, the bullion's price could recover to the 1,850.00 level, which has previously shown that it can provide both resistance and support.
On the other hand, a potential decline below the 1,800.00 mark could look for support in round price levels. The metal found support in various round price levels in the 1,750.00 to 1,800.00 zone throughout April.
Hourly Chart
XAU/USD daily charts review
The metal's drop passed the support of the 55 and 200-day simple moving averages and the 38.20% Fibonacci retracement level.On Thursday, the 100-day simple moving average was providing support just below the 1,800.00 mark and the 55-day SMA was strengthening the resistance of the 1,820.00 level.
Daily Candle Chart
Long sentiment grows
On Thursday, the sentiment on the Swiss Foreign Exchange were 63% bullish, as 63% of open position volume was long.
On Wednesday, the open positions were 57% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 71% to buy the metal.