This week, watch out for the US Federal Reserve Federal Open Market Committee Meeting Minutes release on Wednesday at 18:00 GMT.
The meeting minutes might impact the value of the US Dollar by revealing additional details about the recent US rate hike.
XAU/USD short-term forecast
An extension of the ongoing decline is set to look for support in the 1,900.00 level, the lower trend line of the channel pattern and the 1,895.00 level, which has previously acted as support. Note that the price has been declining for an extended period and a consolidation by fluctuating sideways is possible.
A potential recovery of the commodity price is set to face resistance in the combination of the 50 and 100-hour simple moving averages and the 1,910.25 level. Above these levels the 1,920.00 level and the 200-hour SMA are expected to provide resistance.
XAU/USD daily charts review
On the daily candle chart, the metal has passed below the 200-day simple moving average on Wednesday. Support was found on the same day in the 1,900.00/1,915.00 range. On Thursday, the 200-day SMA was confirmed as resistance.Since the events described above, the metal appears to be squeezed in. The approaching 50 and 100-day simple moving averages could provide additional resistance and create a move through the 1,900.00/1,920.00 range.
Daily Candle Chart
Gold traders are mostly long
On the Swiss Foreign Exchange, traders are 74% 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 80% to buy.