The SMA pushed the rate through the support line of the channel up pattern. The decline resulted in the metal's price reaching below the 1,490.00 level.
Economic Calendar Analysis
This week, there will be a couple of data releases from the US that could have an impact on the price for gold.
On Wednesday, September 11, the US Producer Price Index data will be published at 12:30 GMT. Also note that the US Crude Oil Inventories data will be published at 14:30 GMT.
On Thursday, September 12, the US Consumer Price Index data will be released at 12:30 GMT.
On Friday, September 13, the US Retail Sales data will be published at 12:30 GMT.
XAU/USD short-term forecast
On Tuesday, it could be observed that the metal's price was consolidating by retracing back up.
In general, the retracement was expected to reach the 1,500.00 level, where it would face psychological resistance. Moreover, the 55-hour SMA should reach this level in the near term future.
In theory, the metal should resume its decline after reaching the mentioned resistance level.
Hourly Chart
On the daily candle chart, the price for gold is heading to the lower trend line of a dominant channel up pattern. The trend line should be reached near the 1,480.00 level.
In addition, note that gold faces the support of the monthly PP at 1,492.35 and the 55-day SMA at 1,463.06.
Daily Chart
Short position decreases
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Tuesday's trading session, 64% of open position volume was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were slightly bullish – 53% of orders were to buy and 47% to sell.
Previously, the orders were 59% bearish.