This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
XAU/USD short-term forecast
A decline below 1,955.00 is expected to find support in the 1,950.00, 1,940.00 and 1,932.25 levels. These levels have acted as support and resistance during the recent past.
However, a breaking of the resistance of the 200-hour SMA and the 1,965.00 level might result in a jump to the 1,970.00 level and the 100-hour SMA. The price could stop at the 1,970.00 mark or pass it and approach the high level zone at 1,984.20/1,987.70.
XAU/USD daily charts review
On the daily candle chart, the metal has found support in the 200-day simple moving average. The moving average has caused a surge, which broke the descending channel pattern, the 50 and 100-day simple moving averages and the 1,955.00/1,965.00 range.Daily Candle Chart
Gold traders are neutral
On the Swiss Foreign Exchange, traders are 53% long on gold, as that proportion of open Gold positions are long.
In the meantime, pending orders in the 1000 point range around the current price are 55% to sell.
On Monday, traders were 52% long and orders were 69% to sell.