Watch the US ISM services PMI release on Wednesday at 14:00 GMT. Besides this release, there are no notable events scheduled that can impact the financial markets.
XAU/USD short-term forecast
In the near term future, support might be found in the 1,920.00/1,923.00 range that has previously acted as both support and resistance. Below 1,920.00, take into account the 1,910.25 level and the 1,900.00/1,905.00 range.
On the other hand, a recovery of the commodity price would have to break through the 1,930.00/1,932.25 range and the 200-hour simple moving average, prior to reaching the 1,940.00 mark. On Tuesday, the 1,940.00 mark was strengthened by the 50 and 100-hour simple moving averages.
XAU/USD daily charts review
On the daily candle chart, it appears that the 1,950.00/1,965.00 zone has held and the metal is set to resume its broader decline. Meanwhile, the commodity price was squeezed in between the support of the 50 and 200-day simple moving averages and the resistance of the 100-day SMA. The price has broken out of the squeeze to the downside.Daily Candle Chart
Gold traders are mostly long
On Tuesday, the Swiss Foreign Exchange, traders were 60% bullish on gold, as that proportion of open Gold positions were long.
In the meantime, pending orders in the 1000 point range around the current price are 63% to buy.
On Monday, positions were 59% long and orders were 53% to buy.