The most recent surge of the yellow metal found resistance in a round price level. Namely, the 1,930.00 price mark stopped the metal's surge.
During Monday's European trading hours, the commodity price was expected to consolidate by trading sideways or declining.
Economic Calendar Analysis
The week's notable events are set to start on Tuesday. At 12:30 GMT, the US Consumer Price Index could cause a noteworthy move. In September and August this event caused a slight increase of volatility.
On Wednesday, the US Producers Price Index is scheduled to be published at 12:30 GMT. The last release occurred during a major increase of volatility.
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Since Friday, the XAU/USD exchange rate has been testing the 1,930.00 level.
If the given level holds, it is likely that some downside potential could prevail in the market. In this case the price for gold could decline to the support area formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 1,900.00/1,909.25 range.
On the other hand, yellow metal could gain support at the 1,920.00 mark. Thus, gold could trade sideways against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, the price faced the resistance of the 55-day SMA and the 50.00% Fibonacci retracement level at 1,940.93 and 1,947.16.
Moreover, the metal had clearly broken the resistance line of the August, September and prior October high levels.
In the meantime, the 38.20% Fibo at 1,916.78 could start to provide support.
Daily Candle Chart
Traders are long
Since Wednesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 54% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 76% to buy the metal.