This week, the markets are looking forward for the monthly United States inflation and retail sales data. In addition, on Wednesday, the FOMC Meeting Minutes might impact the markets.
On Wednesday, at 12:30 GMT, the US Producers Price Index change will reveal inflation at the production level.
Later on, at 18:00 GMT, the Federal Reserve Federal Open Market Committee Meeting Minutes are going to provide more insight into the decisions of the US monetary policy makers.
On Thursday, the top event of the week will take place. The United States Consumer Price Index is scheduled to be published at 12:30 GMT.
On Friday, at 12:30 GMT, the US Retail Sales data could also impact the financial markets.
XAU/USD short-term forecast
In general, previous support and resistance levels have been marked on the chart. Note the zones near 1,640.00 and 1,660.00. Further below, note the September low level zone at 1,615.70/1,621.65.
However, a recovery of the commodity price might encounter resistance in the 1,680.00 level and the 50-hour simple moving average. Higher above, take into account the 200-hour SMA near 1,690.00 and the 100-hour SMA near 100-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the price pierced the upper trend line of the 2022 channel down pattern and the 50-day simple moving average near 1,715.00. Higher above, note the 100-day SMA near 1,740.00.Daily Candle Chart
Traders set up sell orders
On Monday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 78% to buy the precious metal.
On Tuesday, the positions were 62% long and orders were 62% to sell.