This week, the markets are looking forward for the monthly United States inflation and retail sales data. In addition, on Wednesday, the FOMC Meeting Minutes might impact the markets.
On Wednesday, at 12:30 GMT, the US Producers Price Index change will reveal inflation at the production level.
Later on, at 18:00 GMT, the Federal Reserve Federal Open Market Committee Meeting Minutes are going to provide more insight into the decisions of the US monetary policy makers.
On Thursday, the top event of the week will take place. The United States Consumer Price Index is scheduled to be published at 12:30 GMT.
On Friday, at 12:30 GMT, the US Retail Sales data could also impact the financial markets.
XAU/USD short-term forecast
A recovery from the support zone is expected to find resistance in the 1.675.00 and 1,680.00 levels, before the Tuesday's high is tested. In addition, take into account the 100 and 200-hour simple moving averages near 1,690.00.
In the case of a commodity price decline, the 1,657.20/1,662.50 would have to be passed, prior to the price reaching the 1,650.00 level and the support zone above 1,640.00
XAU/USD daily charts review
On the daily candle chart, the price pierced the upper trend line of the 2022 channel down pattern and the 50-day simple moving average near 1,715.00. Higher above, note the 100-day SMA near 1,740.00.Daily Candle Chart
Traders set up sell orders
On 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 53% to buy the precious metal.
On Tuesday, the positions were 62% long and orders were 62% to sell.