The rate eventually broke the resistance of the 2035.00 level and reached the 2050.00 mark. However, the 2050.00 stopped the surge and caused a decline.
By the middle of Tuesday's GMT trading the metal's price had reached below the 2000.00 level and shortly traded at 1985.00.
Economic Calendar Analysis
On Tuesday, the US Core PPI and PPI data are going to be released at 12:30 GMT.
On Wednesday, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Given that yellow metal is pressured by the 200-hour moving average, it is likely that some downside potential could prevail in the market. In this case the rate could target the psychological level at 1,960.00.
In the meantime, it is unlikely that bulls could prevail in the market, and the price for gold could exceed the 2,040.00 mark due to the resistance of the 55– and 100-hour SMAs.
Hourly Chart
On the daily candle chart, the Fibonacci retracement levels are added to the recent late July and August sharp surge. Note that the 1977.50 and 1947.15 levels could provide support.
Daily Candle Chart
Traders are neutral
On Friday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 56% was short.
By the middle of Monday's GMT trading hours, the sentiment was 53% short. On Tuesday, it was 52% short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 75% to buy. Previously, 82% of orders were to buy.