The support levels at 1,292.00, which were reached on Monday, held their ground as expected.
In regards to the future, the metal is expected to once more test the resistance of the 1,300.00 level.
This week will be unusual. The majority of the notable macroeconomic events will take place at the start of the week.
On Tuesday, at 12:30 GMT the US Consumer Price Index and Core Consumer Price Index will be published.
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
XAU/USD short term forecast
During Monday's trading session, the support level of the 23.60% Fibo at 1,292.00 helped the yellow metal to end the trading session at the 1,290.00 level. During Tuesday's morning hours, the 55-hour simple moving average supported gold to break through the resistance level of the 200-hour SMA to be located at the 1,296.200 mark.
In regards to the near-term future, most likely, most of the technical indicators will support the yellow metal to surge towards the upper boundary of the medium pattern at the 1,300.00 level.
Moreover, if the rate will reach the pattern line, it is expected, that gold might surge reach the 1,310.00 level.
Hourly Chart
On the daily chart it can be seen that the rate is consolidating its decline after falling from the 1,340.00 level, which was touched in February.Meanwhile, the 55-day SMA had become part of the resistance cluster near 1,300.00.
At the same time, below the monthly S2, at 1,268.00, the 100-day simple moving average was providing support.
Daily Chart
Traders remains bearish on gold
On Tuesday, 58% of all the open position volume on the Swiss Foreign Exchange was shorting the metal.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders were mostly set to buy the commodity, as 58% of orders were set to buy.
It is assumed that these orders are the stop losses of the short positions. Most likely, traders have set up their stop losses just above the 1,300.00 level.