However, from a technical analysis perspective, the sideways trading appears normal, as the rate is consolidating previous gains by remaining flat in the borders of a channel up pattern. Economic Calendar Analysis
On Tuesday, the US Producer Price Index and Core Producer Price Index at 13:30 GMT could cause minor USD volatility.
On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price Index will be released. In addition, the weekly US Unemployment Claims are set to be out at the same time. If the data sets combined beat or disappoint forecasts, a notable move in all USD assets might occur.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
A potential surge might start, as soon as the price reaches the support of the channel up pattern and the 50-hour simple moving average, which are both approaching the pair. A move upwards would test the resistance of the summer high level zone at 1,830.00/1,835.00.
If the support levels fail, the price could drop. A drop might find support in the 1,810.00/1,814.00 zone, which has shown to be capable of providing both support and resistance. Further below, note the 1,800.00 mark and the 100 and 200-hour simple moving averages near that level.
XAU/USD daily charts review
On the daily candle chart, one can better observe how the summer high level zone is formed. Note that the daily simple moving averages were providing both resistance and support in July.Daily Candle Chart
Traders go short
Since Friday, the sentiment on the Swiss Foreign Exchange was 52% bullish, as 52% of open position volume was in long positions.
On Tuesday, traders changed their opinion, as the sentiment was 53% short. Traders had become bearish.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 67% to sell the precious metal.