This week, the rate could be impacted by the publication of the US ISM Manufacturing PMI and the JOLTS Job Openings on Tuesday at 14:00 GMT.
On Thursday, watch out for the Bank of England's expected rate hike at 5.25%. It is possible that not only the GBP pairs, but other financial instruments could adjust to the continuation of rate increases.
On Friday, at 12:30 GMT, the US employment data will impact the USD and all rates that involve it. The release will consist of the US Average Hourly Earnings change, Non-Farm Employment Change and the official Unemployment Rate.
XAU/USD short-term forecast
A continuation of the commodity's recovery could aim at the high level zone at 1,984.20/1,987.70. A breaking of the high level zone at 1,984.20/1,987.70 is expected to result in an extension of the ongoing gold's recovery. The surge might be slowed down by the 1,990.00 and 1,995.00 levels, before the price tests the 2,000.00 mark.
On the other hand, a decline of the metal's price is expected to look for support first in the 200-hour SMA at 1,965.00, secondly in the 100-hour SMA near 1,960.00 and afterwards the 50-hour SMA near 1,955.00. Note that the SMAs are located at round price levels. Below the moving averages the 1,950.00 level could turn into support.
XAU/USD daily charts review
On the daily candle chart, in early July, the metal has found support in the 200-day simple moving average. The moving average has caused a surge, which broke the 50 and 100-day simple moving averages and the 1,955.00/1,965.00 range.For the most part of July the rate has been consolidating above the 1,950.00 mark and the support of the 50-day SMA. In regards to the future, note that the 200-day SMA is approaching the price from below and could be the catalyst for a new surge.
Daily Candle Chart
Gold traders are neutral
On the Swiss Foreign Exchange, traders are 51% bullish 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 67% to sell.
After the Fed hike, 51% of traders had short positions and orders were 52% to buy.