The yellow metal experienced a sharp drop on Monday, which was followed by an immediate recovery. The event was attributed to the announcement of another coronavirus vaccine.
In regards to the near term future, the metal was being affected by both round price levels and the hourly simple moving averages.
Economic Calendar Analysis
Notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate touched the 1,870.00 level. During Tuesday morning, the rate was trading at 1,900.00.
From the one hand, it is likely that yellow metal could gain support from the 55– and 200-hour moving averages in the 1,885.00 area. In this case the price for gold could target the 1,910.00/1,920.00 range.
From the other hand, the exchange rate could remain under pressure of the 200-hour moving average near 1,900.00 and trade downwards within the following trading session.
Hourly Chart
On the daily candle chart, the yellow metal is approaching the resistance of the 55 and 100-day simple moving averages, which were located near the 1,908.00 level.
In the meantime, note that the 1,850.00 level provided the metal with support in late September and during the metal's recent Pfizer vaccine drip.
Daily Candle Chart
Long sentiment remains unchanged
Since Thursday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 63% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 72% to buy the metal.
The orders were 100% to buy on Monday.