During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at 12:30 GMT.
On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
XAU/USD short-term forecast
If the price eventually manages to approach and pass above the 1,900.00 level, it is highly likely that the 1,910.00 mark would once again act as resistance.
On the other hand, a potential decline is expected to look for support in round price levels, prior to reaching the May low levels at 1,850.40/1,854.30.
XAU/USD daily charts review
On the daily candle chart, the metal's price has moved below the support zone, which surrounds the 1,900.00 mark and the 100-day simple moving average. Next support on the chart is the 200-day simple moving average near 1,840.00.Daily Candle Chart
Traders set up sell orders
Since Wednesday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 50% to buy and sell the precious metal.
On Friday, traders were 61% bullish and pending orders were 57% to sell.