This week, the top event for all markets will be the US Consumer Price Index and Core Consumer Price Index release on Wednesday at 12:30 GMT.
If the inflation data beats expectations, it is set to signal that the US Federal Reserve is pressured to hike interest rates and with it push the US Dollar's value up. On the other hand, a reveal that the inflation has slowed down might allow the central bank to go easier on the monetary tightening, which in turn would cause a decline of the USD.
On Thursday, at 12:30 GMT, the Producers Price Index and Core Producers Price Index will reveal inflation at the producer level. The PPI signals upcoming price increases or decreases at the consumer level.
XAU/USD short-term forecast
A move above 1,790.00 could encounter resistance in the last week's high at 1,795.00, prior to reaching the 1,800.00 mark. Higher above, take into account the 1,810.00/1,815.00 zone, which captures the support and resistance of late June and early July.
In the meantime, a decline of the commodity price is set to look for support in the 1,780.00 level, before approaching the 1,771.30/1,773.10 range.
XAU/USD daily charts review
On the daily candle chart, the price for gold has passed above the resistance of the 50-day simple moving average near 1,790.00. This week, prior to the CPI release, the metal was testing the upper trend line of a five-month-old channel down pattern.Daily Candle Chart
Traders are long
This week, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 51% to sell the precious metal.