On Monday, gold prices jumped at the middle of the day. The price jumped up to 1,304.00. The surge occurred as soon as the commodity price managed to break the resistance of the 1,298.00 level.
In regards to the near term future, the price was expected to climb higher, as it had no technical resistance as high as 1,309.30.
This week data releases are set to start on Wednesday. On that day the calendar is full of events that have impacted various currencies in the past.
During the morning hours of the day the UK GDP and Manufacturing Production are expected to cause an impact on the GBP currency pairs. The data release is scheduled to occur at 08:30 GMT.
At 11:45 GMT all attention will be given to the ECB. At that time the ECB Main Refinancing Rate and Monetary Policy Statement will be published.
Although, note that these European Central Bank announcements do not create the moves on the EUR pairs. They are caused by the ECB Press Conference, during which the President of the ECB reveals new information by answering questions. The press conference starts at 12:30 GMT.
Meanwhile, exactly at 12:30 GMT USD pairs will be impacted by the publication of the US Consumer Price Index data. This can cause a move of up to 20 pips on USD pairs.
Wednesday will end with an above all fundamental event. The Federal Reserve Federal Open Market Committee will publish their Meeting Minutes.
In the publication the Fed will officially announced their future plans for US monetary policy.
That will be all on Wednesday. On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All of these events will be covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
XAU/USD short term forecast
On Monday, gold jumped, as soon as it pierced the resistance of 1,298.00. By the middle of the day the 1,304.00 level was touched.
In regards to the future, the metal was expected to continue the surge as soon as it consolidates the current gains by trading sideways for a short period of time. In that case the rate would reach for the resistance levels near 1,310.00.
On the other hand, the consolidation can turn into a decline down to the 1,300.00 level, which would provide support to the metal.
Hourly Chart
On the daily chart the rate has finally left the sideways trading range, in which it had been for more than a week.Moreover, it could be observed that it was the 100-day simple moving average which pushed the commodity price up.
Meanwhile, take into account that the 55-day simple moving average will provide technical resistance at 1,306.45.
Daily Chart
Traders continue to short the metal
Since Wednesday, 56% of the open position volume on the Swiss Foreign Exchange was in short positions.
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 in that range were set to sell in 55% of cases.