On Friday morning, the yellow metal's price was approached by the resistance of the 55-hour simple moving average. It stopped the commodity price's attempt to recover.
On Monday, the US PMIs are set to be released at 14:45 GMT. Previously, the event did not cause adjustments in the USD value. However, in the most recent past the situation has changed.
Another day to watch the Economic calendars will be Wednesday. At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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 could reverse north from the 1,855.00 level.
Given that gold is pressured by the 55-, 100– and 200-hour moving averages in the 1,869.00/1,877.00 range, it is likely that some downside potential could prevail in the market.
In the meantime, if the given level holds, gold could trade sideways against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, the yellow metal is once again approaching the support of the 1,850.00 mark.
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
Sentiment is unchanged
Since Thursday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 67% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 53% to buy the metal.