This week most events will be ignored due to a simple reason. The US central bank, The Federal Reserve is scheduled to make a rate announcement on Wednesday at 18:00 GMT. The Fed is expected to keep interest rates unchanged at 5.50%.
Afterwards, note the 18:30 GMT press conference of the Chairman of the Federal Reserve Jerome Powel. His comments always cause major volatility and quite often reverse the initial market reaction to the publication of the USD base interest rate.
XAU/USD short-term forecast
A passing below the support range's lower level of 1,990.30 and the 100-hour simple moving average would result in the metal looking for support in the 1,980.00 and 1,970.00 levels and the ascending 200-hour simple moving average.
On the other hand, a surge of the commodity price is expected to face the 2,010.00 mark, before approaching the 2,040.00 and 2,048.20 levels that have shown to be capable of impacting the metal. However, note that another round price level could turn into resistance.
XAU/USD daily charts review
On the daily candle chart, the price has passed above the descending trend line and the 200-day simple moving average. Moreover, the 1,950.00/1,965.00 range has been broken and appears to have turned into support. The metal has to break the 2,000.00 mark to reach the high level zone at 2,065.00/2,080.00.Daily Candle Chart
Gold traders are short
On Monday, the Swiss Foreign Exchange, traders were 62% short on gold, as that proportion of open Gold positions were short.
In the meantime, pending orders in the 1000 point range around the current price are 68% to buy.
By mid-Tuesday, positions were still 62% short. However, orders were 58% to buy.