By the middle of Tuesday's trading the commodity price had already reached the 1,535.00 level.
Economic Calendar Analysis
During this week there are a couple of government macroeconomic data releases, which might cause sudden moves in the value of the USD. If the value of the USD changes, the price of gold should also change.
On Tuesday, the US Consumer Price Index is set to be published at 12:30 GMT. The data release has two numbers being published that are important. Namely, the CPI and Core CPI.
The CPI differs from the Core CPI by not having included food and energy prices. That is done to see the inflation of goods that are not a basic nesecity.
On Thursday, the US Retail Sales are expected to cause a move at 12:30 GMT. Note that this release also will consist of two numbers.
The Core Retail Sales do not include auto sales. People buy cars on debt, paying the same amount of money each month and continue to buy the needed transportation no matter what. The elimination of auto sales improves retail sales as a measure of economic growth.
XAU/USD short-term forecast
Yesterday, the price for gold skyrocketed to the 1,520.00 level. During Tuesday's morning, the XAU/USD exchange rate surpassed the 1,525.00 mark.
From the one hand, yellow metal could continue to appreciate against the US Dollar in the short term. A possible upside target is the area between the psychological level at 1,535.00 and 1,540.00.
On the other hand, gold could consolidate against the Greenback near the 1,530.00 mark within the following trading session.
Hourly Chart
The massive scale pattern of the weekly candle chart has been broken. The metal continues to surge. As this pattern has been broken, there is no technical resistance to the metal.
Meanwhile, note that the daily simple moving averages are located below the 1,300.00 level. It is a clear indicator of how much the metal is overbought.
However, the move is purely fundamental. Due to that reason the indicators have a small impact on the price.
Weekly Chart
Traders remain short on gold
On Monday, on the Swiss Foreign Exchange 73% of open gold position volume was in short positions.
By the middle of Tuesday's London trading session the sentiment was 71% short. Traders are suffering losses on their gold positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bullish- 67% were set to buy, and 33% of orders were set to sell.