The yellow metal's price faced the support level formed by the monthly S2 at 1,466.10.
Gold could remain under pressure of the 55-hour SMA near 1,530.00 and trade downwards in the short term.
Today, the US Retail Sales could cause a small move in the markets at 14:30 GMT.
On Wednesday, the event of the week is set to occur, as at 20:00 GMT the FOMC Statement and Federal Funds Rate are going to be published.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
XAU/USD short-term forecast
On Monday, the XAU/USD exchange rate touched the support level—the monthly S2 at 1,466.10. During today's morning, the rate was trading near the given level.
It is likely that yellow metal could remain under pressure of the 55-hour SMA near 1,530.00 and trade downwards in the short run. In this case the rate could gain support from the Fibo 38.20% at 1,434.16.
However, if the monthly S2 holds, it is likely that gold could trade sideways between it, as well the monthly S1 at 1,526.37. Also, it is unlikely that bulls could prevail, and the rate could exceed the 100-hour SMA near 1,570.00.
Hourly Chart
On the daily candle chart, it can be observed that the recent drop broke the large-scale channel up pattern. It signals that the long-term surge of the metal is over.
Daily Chart
Long sentiment increases
On Tuesday, the Swiss Foreign Exchange sentiment was 54% short. Traders were neutral during the recent drop.