On Tuesday, the US Consumer Price Index and Core Price Index are set to impact the markets through the US Dollar's value adjusting to US rate hike expectations. Namely, too high inflation is set to strengthen the USD, as the markets would expect higher rate hikes.
On Wednesday, at 12:30 GMT, the US Producer Price Index and Core Producer Price Index data will also impact the US Dollar.
Additional data will be published on Thursday, as the US Retail Sales and Core Retail Sales are set to be released at 12:30 GMT.
XAU/USD short-term forecast
An extension of the price's surge might encounter resistance in the 1,735.00, 1,740.00 and 1,745.00 levels. In addition, note the trend line, which connects the Wednesday and Thursday high levels.
On the other hand, a decline of the metal's price could look or support in the 1,725.00 and 1,720.00 levels, before approaching the 50, 100 and 200-hour simple moving averages near 1,710.00. Moreover, the recent low level trend line might act as support.
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. In regards to resistance, take into account the 50-day simple moving average near 1,740.00 and the zone at 1,755.00/1,760.00.Daily Candle Chart
Traders set up buy orders
On Thursday, the sentiment on the Swiss Foreign Exchange was 65% bullish. Namely, 65% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 53% to sell the precious metal.
On Friday, positions were 67% long and pending orders were 67% to buy.