Gold's decline stopped at the 1,675.00 level. From that level the commodity price began a recovery. By the middle of Monday's GMT trading the metal had reached above the 1,695.00 mark.
Previously, a drop was caused by the Bureau of Labor Statistics release of the US Non-Farm Employment Change data, which came out better-than-expected of 2509K compared with the forecast of negative 7750K.
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a move below normal volatility.
XAU/USD short-term forecast
During Monday morning, the rate raised to the 55-hour SMA near 1,700.00.
If the given resistance holds, it is likely that a reversal south could occur. If the given support level holds, it is likely that the price for gold could fluctuate between the given resistance and support.
Meanwhile, it is unlikely that bulls could prevail in the market, and the price for gold could exceed the resistance area formed by the 100– and 200-hour SMAs, as well the monthly PP in the 1,710.00/1,722.34 range.
Hourly Chart
On the daily candle chart, the metal has broken the support of the 55-day simple moving average.
Due to that reason the next support for the price could be the 100-day SMA, which was located near 1,643.70.
Daily Candle
Traders remain long
Since Thursday, on the Swiss Foreign Exchange 58% of open position volume was in long positions.
Meanwhile, in 1000 pip range around the current metal's price, 54% of set up pending orders were set to buy the metal.