During Wednesday morning hours, the gold was supported by the 55-hour and the 100-hour simple moving averages at the 1,310.40 mark.
In general, the rate was expected to surge up to a combination of resistance lines at 1,316.00.
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.
On Tuesday the heads of Bank of England and the US Federal Reserve spoke publicly. UK's Governor Carney spoke at 13:00 GMT and the head of the Federal Reserve Jerome Powell spoke at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
XAU/USD short term forecast
During Tuesday's trading session, the yellow metal was trading between the 200-hour and the 100-hour SMAs. During Wednesday's morning hours, the 100-hour simple moving average supported the rate at the 1,310.50 mark.
In regards to the near-term future, it is expected that the 55-hour and the 100-hour SMAs will push the rate to break the resistance of the 200-hour simple moving average.
In addition, today's US CPI and Core CPI data release at 13:30 GMT might support the US Dollar to appreciate against the gold to trade at the 1,314.00 level.
Hourly Chart
A new pattern has been added to the daily chart and old patterns were deleted. Note that it is a simple ascending channel pattern, which captures the surge of the yellow metal that has been occurring since November.If the pattern manages to guide the commodity price higher, by the start of April, the commodity price should trade above the 1,350.00 level. Although, on its way upwards the metal will face various monthly pivot points.
Meanwhile, all simple moving daily averages are far below the metal, indicating that it is overbought.
Daily Chart
Short sentiment remains intact
On Wednesday, XAU/USD traders on the Swiss Foreign Exchange were short. The sentiment had become 64% short.
Meanwhile, 67% of trader orders for the XAU/USD were set to buy.