The rate was expected to get squeezed between the described trend line and the resistance of the 55-hour simple moving average that was sharply heading down.
Economic Calendar Analysis
This week, there will be a couple of data releases from the US that could have an impact on the price for gold.
On Wednesday, September 11, the US Producer Price Index data will be published at 12:30 GMT. Also note that the US Crude Oil Inventories data will be published at 14:30 GMT.
On Thursday, September 12, the US Consumer Price Index data will be released at 12:30 GMT.
On Friday, September 13, the US Retail Sales data will be published at 12:30 GMT.
XAU/USD short-term forecast
During Friday, the XAU/USD exchange rate tested the lower boundary of the medium-term ascending channel located circa 1,505.00. During today's morning, the rate was trading near the given line.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. However, it is unlikely that the price for gold could exceed the 1,530.00 mark due to the resistance of the 100– and 200-hour SMAs.
If the given channel does not hold, it is expected that a breakout south could occur within the following trading hours. A possible downside target is the monthly PP at the 1,492.35 mark.
Hourly Chart
On the daily candle chart, the price for gold reversed south from the upper boundary of the long-term ascending channel.
From a theoretical point of view, it is likely that yellow metal could test the lower channel line in the short term.
In addition, note that gold could face support of the monthly PP at 1,492.35 and the 55-day SMA at 1,461.86.
Daily Chart
Swiss traders remain short
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bearish– 59% of orders were to sell and 41% to buy.