However, the Fed should finally move the metal's price. Meanwhile, before the event the 50-hour simple moving average was observed to be acting as resistance. Economic Calendar Analysis
On Wednesday, the top event of them all will take place. The US Federal Reserve will announce its Federal Funds Rate. The central bank is expected to keep the rate at 5.50%. Moreover, note the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. The events are scheduled for 19:00 and 19:30 GMT.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
XAU/USD short-term forecast
A potential surge would face the resistance of the 1,990.00 level or the 2,000.00 mark.
In the case of an extension of the recent decline, support might be found in 1,970.00 or 1,950.00 levels.
XAU/USD daily charts review
On the daily candle chart, the metal has passed below the prior resistance range at 2,005.15/2,009.70. The range did not turn into support. Moreover, the lower trend line of the channel pattern that guided the metal up since October also failed.On Monday, support was found in the 50-day simple moving average near 1,980.00. Note that below the 50-day SMA, the 100 and 200-day SMAs are strengthening the 1,950.00 level.
Daily Candle Chart
Gold traders get rid of short positions
Last week, 63% of volume was in short positions. Pending orders in the 1000 point range around the current price were 88% to sell.
On Monday, traders were 55% short, but orders were 57% to sell.
Before the Fed rate announcements, 52% were short and orders were 59% to sell.