The XAU/USD exchange rate breached the medium-term descending channel north.
Given that the rate is supported by the monthly PP, it is likely that the price for gold could add to gains.
Economic Calendar Analysis
This week, notable data releases are set to start on Tuesday.
Today, the US CPI data sets are set to be published at 13:30 GMT. Last but not least, on Friday the US Retail Sales data will be out also at 13:30 GMT.
The week's event historical data tables have been published. Click on the headline below to read the article.
XAU/USD short-term forecast
On Wednesday, the XAU/USD exchange rate consolidated around the 1,567.00 level. During today's morning, the rate breached the medium-term descending channel north.
It is likely that yellow metal could gain support from the monthly PP at 1,573.09 and continue to trade upwards against the US Dollar in the short run. In this case the rate could exceed the 1,580.00 level.
However, if the given support level does not hold, it is likely that some downside potential could prevail in the market. In this case gold could gain support of the 55-, 100– and 200-hour SMAs in the 1,569.00 area.
Hourly Chart
On the daily candle chart, it can be observed how the rate broke the channel up pattern, which guided the rate's surge since the start of December.
Meanwhile, take into account that the metal is overbought, as indicated by daily simple moving averages, which are located near the 1,500.00 level.
Daily Chart
Traders are short on gold
On Thursday, the Swiss Foreign Exchange gold sentiment was 53% short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 56% of orders were to buy and 44% to buy.