As expected, the yellow metal's price continued its decline on Monday. However, the bullion passed all expectations, as it tumbled down to trade below the 1,890.00 level.
On Tuesday, the bullion was trading above the 1,900.00 mark.
Economic Calendar Analysis
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 13:45 the US PMIs will be released.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
On Monday, the XAU/USD exchange rate tumbled to the 1,900.00 level. During today's morning, the rate was testing the given level.
From the one hand, it is likely that a reversal north could occur in the nearest future. In this case the price for gold could target the resistance range formed by the 55-, 100– and 200-hour SMAs in the 1,935.00/1,947.00 area.
From the other hand, the exchange rate could face resistance at the 1,920.00. Thus, yellow metal could trade sideways against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, the metal has passed the support of the 55-day SMA and the 38.20% Fibonacci retracement level, which kept the price up since August 21.
Next support on the chart was the 23.60% Fibo at the 1,879.18 level.
Daily Candle Chart
Long sentiment grows
On Tuesday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 60% was long.
On Monday, the sentiment was 57% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 59% to buy.