This week, on Tuesday at 14:00 GMT, the US Institute for Supply Management Purchasing Managers Index could impact the financial markets through the reveal of the situation in the US services sector and subsequently the US Dollar's value.
XAU/USD short-term forecast
A decline of the commodity price might look for support in the combination of the 1,705.00 level and the 50-hour simple moving average. Afterwards, the 1,700.00 mark might reverse a decline, prior to the price reaching the last week's low level near 1,690.00.
On the other hand, a potential move above the 100-hour SMA could encounter resistance in round price levels and the 200-hour SMA near 1,730.00.
XAU/USD daily charts review
On the daily candle chart, note the 2021 and 2022 low level zone at 1,675.00/1,680.00, the 50-day simple moving average near 1,750.00 and the resistance and support zone at 1,755.00/1,760.00.Daily Candle Chart
Traders are bullish on gold
On Friday, the sentiment on the Swiss Foreign Exchange was 68% bullish. Namely, 68% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 64% to sell the precious metal.
On Monday, positions were 68% long and pending orders were 67% to sell.