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
A continuation of the surge might eventually test the 1,900.00 mark. On the other hand, a decline could look for support in the 1,879.30/1,881.60 and 1,867.90/1,870.40 zones.
However, the direction of the price is bound to be dictated by the release of the US Consumer Price Index.
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. It could not be enough on its own to reverse the direction of the price.Daily Candle Chart
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.
On Wednesday, open positions were still 54% short and pending orders were 66% to sell.