On Tuesday note the US Consumer Price Index data set release at 13:30 GMT. The data release is set to impact the US Dollar's value. Higher than expected inflation would be seen as pressure on the Federal Reserve to hike interest rates or keep the higher for longer, which in turn would strengthen the US Dollar.
On Wednesday, the US Producer Price Index and Retail Sales data sets are also set to impact the US Dollar. Higher Retail Sales and higher inflation at the production level are also set to signal that the Federal Reserve has to and can increase interest rates.
XAU/USD short-term forecast
An extension of the ongoing decline is set to look for support in previously notable levels like 1,945.00, 1,940.00 and the 1,932.25 level. Below these levels, round price levels could impact the price, before the 1,910.25 support would be reached.
However, in the case of a potential recovery resistance could be found in the 1,956.60/1,957.10 range and the descending 50-hour simple moving average. Higher above, take into account the 1,965.00 and 1,970.00 levels and the 100-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the price has the 1,950.00/1,965.00 range as support. Passing below these levels and the 200-day SMA could result in the price looking for support in the 50 and 100-day SMAs near 1,925.00. Further below, note the 1,900.00 mark.On the other hand, 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 shorting
This week, the Swiss Foreign Exchange, traders were 57% 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 have been 50% to sell and buy.