This week, the US Consumer Price Index release is set to dictate the short term direction of all financial markets. The data will be published on Thursday at 13:30 GMT.
XAU/USD short-term forecast
If the additional support of the 50-hour SMA manages to push the price through the resistance of 1,881.60, the price might finally test the 1,900.00 mark.
On the other hand, a decline of the commodity could look for support in the 100-hour simple moving average and the 1,860.00 level.
XAU/USD daily charts review
On the daily candle chart, the metal has reached the June high of 1,880.00. This high level managed to act as resistance, but note that in June it was supported by the 50-day simple moving average.Daily Candle Chart
Read More: Technical Analysis
Traders are shorting gold
On Tuesday, traders were short, as 54% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 63% to buy.