At mid-day on Monday, the price for hold plummeted from 1,890.00 to 1,865.00. The move was forecast in the short term daily review.
In regards to the near term future, the metal had no technical support. However, the 1,860.00 level could provide support.
Notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
The decline of the yellow metal is set to test the support of the 1,865.00 level, which stopped the sudden price drop.
In the case of this support level holding, the metal would trade sideways until it is approached by the 55 and 100-hour simple moving average.
On the other hand, if the 1,865.00 level fails to keep the rate up, the metal would reach for the support of the 1,860.00 level and afterwards test the support of 1,850.00.
Hourly Chart
On the daily candle chart, the yellow metal has passed the support of the 55 and 100-day SMAs and the Fibonacci retracement levels, which impacted the price since August.
In the meantime, note that the 1,850.00 level provided the metal with support in late September and during the metal's recent Pfizer vaccine drip.
Daily Candle Chart
Long sentiment remains unchanged
Since Thursday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 63% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 100% to buy the metal.
The orders were 64% to buy on Friday.