On Tuesday, the yellow metal declined to the 1,600.00 level. By reaching that level the commodity price passed the support of the monthly pivot point and the 55 and 100-hour simple moving averages.
In general, if the support of the 1,600.00 would fail, the pair could drop as low as the 200-hour simple moving average near 1,572.00.
During this week, data can be ignored, as the fundamental background has changed due to the coronavirus.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
XAU/USD short-term forecast
Given that yellow metal is pressured by the 55– and 100-hour SMAs near 1,620.00, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the rate could drop below the 200-hour SMA near 1,570.00.
However, if the given support level holds, it is likely that the price for gold could maintain its consolidation. Also, it is unlikely that bulls could prevail, and the rate could exceed the local resistance level at 1,640.00.
Hourly Chart
On the daily candle chart, the commodity price trades above the daily simple moving averages. The 55-day SMA was located at 1,587.88. The 100-day SMA was at 1,543.77, and the 200-day SMA fluctuated near 1,510.00.
Daily Chart
Sentiment remains unchanged
Since Monday, the Swiss Foreign Exchange sentiment was 55% long. Namely, 55% of open gold position volume was in long positions.
Traders remained slightly long on the metal.