The yellow metal ended its sideways trading by surging. Namely, by the middle of Tuesday's GMT trading hours the price of the metal had reached above the 1,970.00 level.
Meanwhile, on the hourly candle chart the price had revealed a rising wedge pattern.
Economic Calendar Analysis
On Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement at 18:00 GMT.
On Thursday, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The XAU/USD exchange rate has revealed a rising wedge pattern. During Tuesday morning, the rate was testing the monthly PP at 1,969.20.
From a theoretical point of view, it is likely that the yellow metal could continue to appreciate against the US Dollar within the given pattern in the short term.
Meanwhile, if the predetermined resistance level holds, it is likely that the exchange rate could trade sideways within the following trading session.
Hourly Chart
On the daily candle chart, the metal aims at the resistance of the 61.80% Fibonacci retracement level at 1,977.55. If this level would fail to once again keep the price down, there would be no technical resistance as high as the previous high level of 2,075.00.
In the meantime, the support of the 55-day simple moving average had approached the metal. It signals that a surge of the price could occur.
Daily Candle Chart
Traders remain long
Since Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 57% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 75% to buy.