After touching a new high level on Monday morning, the yellow metal's price began a decline. The decline found support in the 1,660.00 level.
In regards to the near term future, the metal was expected to once again test the 1,700.00 level.
There will be only one event that could impact the XAU/USD rate.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT.
Meanwhile, the week's historical 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
On Friday, the XAU/USD exchange rate re-tested the upper boundary of the rising wedge pattern at 1,700.00. During today's morning, the rate was testing the support formed by the 55-hour SMA and the monthly R1 at 1,668.23.
From a theoretical point of view, it is likely that gold could continue to appreciate against the US Dollar within the following trading session.
On the other hand, yellow metal could consolidate against the Greenback, trying to surpass the given support. Also, it is unlikely that bears could prevail in the market, and the rate could decline below the 200-hour SMA near 1,640.00.
Hourly Chart
On the daily candle chart, the rate continued to trade in a channel up pattern. This week, the patterns upper trend line is expected to slow down the metal's price surge.
Daily Chart
Traders are short on gold
On Friday, the Swiss Foreign Exchange gold sentiment was 65% short.
By the middle of Monday's GMT trading hours, the sentiment had remained unchanged.