On Monday, the yellow metal retraced back up to trade near the 1,600.00 level. There the price appeared to consolidate by trading sideways.
Economic Calendar Analysis
Already on Monday, a data release could cause a notable move. The US ISM Manufacturing PMI is scheduled to be published at 15:00 GMT.
Some might consider watching the ADP Non-Farm Employment Change on Wednesday at 13:15 GMT.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be published.
On Friday, the US employment data will be released at 13:30 GMT.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
During Monday morning, the rate was testing the resistance formed by the monthly PP at 1,607.96.
If the given resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case it is unlikely that the price for gold could decline below the psychological level at 1,570.00.
It is unlikely that bulls could prevail in the market, and the exchange rate could exceed the 1,640.00 mark due to the resistance formed by the 55-, 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the pierced channel up pattern continues to hold. The lower trend line of the pattern was pierced on Friday. However, the rate returned to trade in its borders.
In addition, during the recent decline, the rate was influenced by the support of the 55-day simple moving average, which has caught up to the price.
Daily Chart
Traders are short on gold
On Monday, the Swiss Foreign Exchange gold sentiment was 60% short. Namely, 60% 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 bullish – 65% of orders were to buy and 35% to sell.
Previously, the orders were 77% to buy and 23% to sell.