Namely, the higher inflation data set indicates that the US monetary policymakers might increase interest rates and thus strengthen the US Dollar. The following decline found support on Monday morning in the 1,784.20/1,786.00 range. Economic Calendar Analysis
The US Consumer Price Inflation data is set to be published on Tuesday at 13:30 GMT. The inflation is set to reveal whether the Federal Reserve is successful in its policy at reducing inflation.
On Wednesday, the top event of them all will take place. At 19:00 GMT, the US Federal Reserve will release its Federal Open Market Committee Statement and Economic Projections. The central bank is expected to hike its base interest rate from 4.00% up to 4.50%.
On Thursday, at 13:30 GMT, the US Retails Sales data and Empire State Manufacturing Index might cause an adjustment in the value of the US Dollar.
The week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data at 14:45 GMT.
XAU/USD short-term forecast
A potential recovery of the commodity price might once again test the resistance of the 1,803.30/1,809.90 zone. However, the surge might be slowed down by the 1,795.00 and 1,800.00 levels.
On the other hand, a decline would have to pass the combined support of the 1,784.20/1,786.00 range, the 100 and 200-hour simple moving averages.
XAU/USD daily charts review
On the daily candle chart, the 200-day simple moving average remains as support. Meanwhile, price still faces the 1,787.05/1,808.15 resistance zone.Daily Candle Chart
Traders remain long
On Friday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 63% to sell the precious metal.
On Monday, the open positions were 61% long and orders were 68% to sell.