This week, there is only one notable scheduled event, which could impact the US Dollar and the financial markets. On Thursday, a minor move could occur due to the Philadelphia Federal Reserve Manufacturing Index release at 12:30 GMT.
XAU/USD short-term forecast
A continuation of the recovery might encounter resistance in the 1,640.00 level and the zone, which surrounds it. In addition, note the descending 50-hour simple moving average. Higher above, a channel's resistance line is located together with the 100-hour SMA.
On the other hand, a resumption of the decline might look for support in the 1,625.00 level and the 1,615.00/1,622.00 zone, before the 1,600.00 mark would be reached.
XAU/USD daily charts review
On the daily candle chart, the price might look for support in the September low level near 1,615.00.Daily Candle Chart
Traders are long
On Thursday, the sentiment on the Swiss Foreign Exchange was 66% bullish. Namely, 66% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 63% to buy the precious metal.
On Tuesday, traders were 63% long and pending orders were 71% to sell.