The price for gold has recovered due to finding support in the 1,700.00 level. By the middle of Monday's trading hours, the commodity price had reached the 1,735.00 level.
In the meantime, support was provided by the 55-hour simple moving average near the 1,720.00 level.
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on all USD traded assets.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
In the case of the surge continuing, the price could test the resistance of the 1,740.00 level, which provided resistance on Thursday. If this level gets passed, most likely the 1,750.00 level would provide resistance.
On the other hand, a decline would look for support in the 55-hour simple moving average, which kept the price up since late Friday's trading hours.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
Daily Candle Chart
Long sentiment decreases
On Monday, the sentiment on the Swiss Foreign Exchange was bullish, as 70% of open position volume was long.
On Friday, 73% of volume was long. Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 60% to buy the metal.