This week, on Tuesday at 14:00 GMT, the US Institute for Supply Management Purchasing Managers Index could impact the financial markets through the reveal of the situation in the US services sector and subsequently the US Dollar's value.
XAU/USD short-term forecast
A resumption of the recovery of the commodity price would have to pass the combination of the 200-hour SMA and the 1,725.00 level. Higher above, the price is expected to encounter resistance in round price levels like the 1,730.00, 1,740.00 and 1,750.00.
On the other hand, a decline of the metal might find support in the 50 and 100-hour simple moving averages near 1,710.00. Further below, take into account the 1,700.00 and the 1,690.00 levels.
XAU/USD daily charts review
On the daily candle chart, note the 2021 and 2022 low level zone at 1,675.00/1,680.00, the 50-day simple moving average near 1,750.00 and the resistance and support zone at 1,755.00/1,760.00.Daily Candle Chart
Traders are bullish on gold
On Tuesday, the sentiment on the Swiss Foreign Exchange was 66% bullish. Namely, 66% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 74% to buy the precious metal.
On Monday, positions were 68% long and pending orders were 67% to sell.