The yellow metal's surge has reached the 1,690.00 level. Moreover, the price has passed the resistance of a monthly pivot point at 1,667.43.
In general, it was expected that the bullion's price would soon test the resistance of the 1,700.00 level.
Economic Calendar Analysis
During the week there are no notable events that might impact gold. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published.
At the same time, the US Preliminary GDP is scheduled to be released.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
During previous trading session, the XAU/USD exchange rate raised to the 1,650.00 level. During Monday morning, the rate jumped to the 1,690.00 mark.
On the one hand, yellow metal could continue to appreciate against the US Dollar in the nearest future. In this case the rate could exceed the psychological level at 1,700.00.
On the other hand, gold could trade sideways against the Greenback in the 1,690.00 area within the following trading session. It is unlikely that bears could prevail, and the rate could drop below 1,635.00 due to the support—the 55-hour SMA.
Hourly Chart
On the daily candle chart, the pattern, which is expected to guide the rate during the next couple of months, has been pierced.
Note that its upper border had been tested in this way at the start of the year. It could be the case that the piercing of the upper trend line would not result in a breaking of the pattern.
Daily Chart
Traders are short on gold
Since Thursday, the Swiss Foreign Exchange gold sentiment was 61% short. Namely, 61% of open position volume was in short positions.
By the middle of Monday's GMT trading hours, the sentiment was 60% short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 87% of orders were to buy and 13% to sell.
Previously, the orders were 59% to buy.