By the middle of Wednesday's GMT trading hours, the yellow metal's price pierced the 1,670.00 level.
During the surge up to this level, the rate broke the resistance of three technical levels and no longer had any resistance as high as the 1,700.00 level.
There will be only one event that could impact the XAU/USD rate.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT.
Meanwhile, the week's historical 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
On Tuesday, the XAU/USD exchange rate broke the lower boundary of a rising wedge pattern. During today's morning, the rate was testing the resistance formed by the 55– and 100-hour SMAs, as well the monthly R1 at 1,667.00. By the middle of the day, these levels were pierced.
In theory, the commodity price should surge, as it had no technical resistance. The rate could reach for the 1,700.00 psychological level, which stopped previous surges.
On the other hand, in the current market environment various assets react sharply to fundamental news. A stimulus announcement by the US government or the Federal Reserve could cause drop of the metal.
Hourly Chart
On the daily candle chart, the rate trades in the borders of two channel up patterns. Meanwhile, the daily simple moving averages had been left behind the rate. This indicates that the metal is overbought.
Daily Chart
Traders are short on gold
Since Tuesday, the Swiss Foreign Exchange gold sentiment was 65% short. Namely, 65% of open position volume was in short positions.
The sentiment has remained almost unchanged throughout the week. For example, it was 64% short on Friday.