If the given moving averages do not hold, it is likely, that yellow metal could appreciate against the US Dollar in the short term.
Economic Calendar Analysis
Meanwhile, take into account that this week the FOMC Meeting Minutes are set to be published at 18:00 GMT on Wednesday.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate tried to surpass the psychological level at 1,495.00/ During today's morning, the rate was testing the resistance formed by the 55-, 100– and 200-hour SMAs, located circa 1,507.00.
If the given moving averages hold, it is likely, that gold could depreciated against the US Dollar within the following trading hours. Note, that yellow metal could be supported by the monthly R2 at 1,487.41.
However, If the given resistance does not hold, it is likely, that yellow metal could extend gains against the Greenback. It is unlikely, that the price for gold could exceed the monthly R3 at 1,521.59.
Hourly Chart
The massive scale pattern of the weekly candle chart has been broken. The metal continues to surge. As this pattern has been broken, there is no resistance to the metal.
Note, that the 55-, 100- and 200-period SMAs, currently located in the 1,505.95/1,514.43 range, it is likely, that some downside potential could occur.
Weekly Chart
Traders are still short
On Tuesday, 68% of open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were neutral - 50% were set to buy, and 50% of orders were set to sell.