Watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
XAU/USD short-term forecast
A resumption of the surge of the commodity price might encounter resistance in the 1,930.00 level, prior to testing the resistance of the 1,950.00 mark.
On the other hand, take into account that the metal's price could decline below 1,910.00. In this case gold is expected to look for support in the 1,900.00 mark and the 100-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the late 2021 high level zone of 1,900.00/1,910.00. Meanwhile, above the 1,950.00 level take into account the high level zone of late 2020 and early 2021 at 1,957.85/1,965.70.Daily Candle Chart
Traders remain short
After the US CPI release, gold traders were short, as 53% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 92% to sell.
On Tuesday, traders were 54% short and orders were 55% to sell.