On Monday, the yellow metal ended trading sideways, as it was approached by the 55-hour simple moving average. It resulted in the pair passing the resistance of the 1,585.00 level.
By the middle of Tuesday's GMT trading hours, the pair had made an attempt to reach the 1,590.00 level.
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XAU/USD short-term forecast
On the one hand, yellow metal could continue to extend gains against the US Dollar in the nearest future. A possible upside target is the upper boundary of the medium-term ascending channel circa 1,595.00.
On the other hand, it is possible that the exchange rate could trade sideways in the 1,585.00/1,590.00 area in the short run. Also, it is unlikely that bears could prevail, and the rate could decline below the 55-hour SMA near 1,581.00.
Hourly Chart
On the daily candle chart, on Monday, Dukascopy Analytics added a new channel up pattern, which was drawn by using the February and December low levels.
In general, judging by the size of this pattern and comparing it with the pattern that guided the late 2019 decline, it is expected that the channel up could guide the price upwards during the following months.
Daily Chart
Traders are short on gold
On Monday, the Swiss Foreign Exchange gold sentiment was 55% short. Namely, 55% of open position volume was in short positions.
By the middle of Tuesday's trading hours, 58% of volume was short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 57% of orders were to buy and 43% to sell.
Previously, the orders were 53% to buy.