By the middle of Tuesday's GMT trading hours, the yellow metal's price had reached back below the 1,700.00 level.
However, after trading below the 1,700.00 mark, the rate began a recovery, which was expected to test resistance near 1,720.00 mark.
This week starts with the US Advance GDP release on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers of a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.
Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
On Friday, the US ISM Manufacturing PMI is scheduled to be published at 14:00 GMT.
XAU/USD short-term forecast
On Monday, the XAU/USD exchange rate breached the short-term ascending channel south. During today's morning, the rate touched the 1,695.00 level.
Given that yellow metal is pressured by the 55– and 100-hour SMAs near 1,718.00, it is likely that some downside potential could prevail in the market. In this case the rate could decline to the 1,685.00 mark.
On the other hand, the exchange rate could gain support from the monthly R1 and the 200-hour SMA near 1,704.00 and trade upwards in the nearest future. In this case the price for gold could target the psychological level at 1,740.00.
Hourly Chart
On the daily candle chart, the metal's price has passed the support of the rising wedge pattern. In theory, the metal should drop.
However, the price is kept up by the 1,700 level. In addition, a decline could find support in 1,650.00.
Daily Candle
Long sentiment disappears
On Monday, the Swiss Foreign Exchange sentiment was 75% long. Namely, 75% of open position volume was in long positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 52% short, as traders had become neutral.