The week will be calm. There are no events that could impact the rate up to Friday.
On Friday, the publication of the Manufacturing and Services sector Purchasing Managers Indices could cause an adjustment in currencies.
The US PMIs will be out at 13:45 GMT. In most cases, the reaction to the publication is minor or the PMI publication turn out to be what is called a non-event.
XAU/USD short-term forecast
The ongoing recovery could be slowed down by the 200-hour simple moving average and the 2,625.00 level. Higher above, the 2,640.00 mark has shown to be capable of acting as support and resistance. If these levels fail, the 2,680.00 level might act as resistance, before the metal returns to the 2,700.00 mark.
Meanwhile, a resumption of the prior decline would result in the metal looking for support in the 2,590.00/2,600.00 range, the 50 and 100-hour simple moving averages and potentially the 2,570.00 and 2,560.00 levels. If all of these support levels fail, the price is expected to once again approach 2,540.00.
XAU/USD daily charts review
On the daily candle chart, the metal broke the ascending pattern and passed below teh 100-day simple moving average. However, the August and early September high level range was not reached.In general, it is possible that the broader surge resumes, but it is more likley that the Monday's recovery was just a consolidation.
Daily Candle Chart
Traders take profits
Before the US elections, 66% of volume was in short positions. Traders were shorting gold.
Meanwhile, in the 1000 point range around the latest price, the pending orders were 88% to sell the metal.
On November 11, we observed that profits had been taken, as 58% of volume was short and orders were 60% to sell.
By this week, on November 18, traders were 51% short. Traders have continued to close short positions and open long positions.