The top event of the week was the US Consumer Price Index release, which hit market forecasts on Tuesday at 12:30 GMT. However, there are more events that are expected to impact the currency pair.
On Wednesday, at 12:30 GMT, the US Retail Sales and Producer Price Index data sets are expected to impact the financial markets through and adjustment of the value of the US Dollar.
XAU/USD short-term forecast
In the case of the metal surging above 1,915.00 resistance might be found in the January and February high levels at 1,949.00 and 1,960.00. However, note that round price levels could slow down a price surge.
On the other hand, a decline of the commodity would have to pass the support of the 1,895.00 level and the 50-hour simple moving average, prior to declining to the 100 and 200-hour simple moving averages near 1,860.00 and 1,850.00.
XAU/USD daily charts review
On the daily candle chart, the metal is facing the resistance of the 2021 high levels at 1,900.00/1,915.00. A move above the resistance zone might reach the 2023 and 2020 high levels above 1,950.00.Meanwhile, note that the 50-day simple moving average is managing to act as support.
Daily Candle Chart
Traders are neutral
On Tuesday, gold traders were neutral, as 51% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 59% to sell.