The yellow metal's price continued to plummet on Monday, as by the middle of the day's GMT trading hours the price was close to 1,450.00.
Moreover, if this level would fail to hold, the price would reach for the 1,400 level.
On Tuesday, the US Retail Sales could cause a small move in the markets at 14:30 GMT.
On Wednesday, the event of the week is set to occur, as at 20:00 GMT the FOMC Statement and Federal Funds Rate are going to be published.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
XAU/USD short-term forecast
At midday on Friday, the yellow metal's price had reached the 1,450.00 level.
In the case of the bullion passing the 1,450.00 mark, it could next aim for the 1,400.00 level, as there are no support levels above this levels.
On the other hand, the price has experienced a sharp drop, which signals that a period of sideways trading could occur.
Hourly Chart
On the daily candle chart, it can be observed that the recent drop broke the large scale channel up pattern. It signals that the long term surge of the metal is over.
Daily Chart
Traders become neutral
On Monday, the Swiss Foreign Exchange sentiment was 51% short. Traders were neutral during the recent drop.