After reaching a seven year high on US-Iran tensions, the yellow metal began to retreat. The price declined to the support of the 55-hour simple moving average and reversed at 1,555.00.
On Tuesday, the pair was set to be pushed by the simple moving average into the resistance of the weekly R2 pivot point at 1,570.60. Economic Calendar Analysis
This week, data releases will start on Tuesday at 15:00 GMT. The US ISM Non-Manufacturing PMI will be released at that time.
On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused a move on the EUR/USD above ten pips. It is the criteria whether to take or not take into account a data release.
The week will end with the three US employment data sets being published at 13:30 GMT.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate reversed south from the 1,580.00 level. During Tuesday morning, the rate traded at the 1,560.00 mark.
Note that yellow metal is supported by the 55-hour moving average, currently located at 1,560.74.Thus, it is likely that some upside potential could prevail in the market. In this case the rate could re-test the 1,580.00 level.
However, note that the exchange rate has to surpass the monthly R2 at 1,570.61. If the given level holds, it is likely that a reversal south could occur in the nearest future. In this case the price for golds could gain support of the monthly R1 and the 100-hour SMA at 1,544.31.
Hourly Chart
On the daily candle chart, the price is surging after bouncing off the support of the channel up pattern that captures the metal's appreciation that has been occurring since the middle of 2018.
Currently, the surge appears to have occurred too sharply. In theory, the metal is overbought and should retrace back down or trade sideways to consolidate the gains.
Daily Chart
Traders short gold
On Tuesday, on the Swiss Foreign Exchange 57% of open gold position volume was in long positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were balanced – 50% of orders were to buy and 50% to sell.
Previously, 74% of orders were to buy.