After surging above the resistance of the 23.60% Fibonacci retracement level at 1,860.59 on Monday, the yellow metal's price was finding support in the retracement level.
Throughout Tuesday's trading hours, the commodity price traded sideways between the mentioned support and the 1,875.00 level.
There are a couple of events expected that could affect the XAU/USD rate.
On Thursday, the US CPI data sets and the Unemployment Claims are set to be published at 13:30 GMT.
The week is set to end with the US Producers Price Index at 13:30 GMT on Friday.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
It is likely that yellow metal could gain support from the Fibo 23.60% at 1,860.59 and extend gains against the US Dollar in the short term. In this case the exchange rate could target the psychological level at 1,900.00.
If the given support does not hold, some downside potential could prevail in the market. Note that the price for gold could gain support from the 55-, 100– and 200-hour SMAs in the 1,820.00/1,850.00 range.
Hourly Chart
On the daily candle chart, the yellow metal is recovering after bouncing off the support of the large scale channel down pattern. On Thursday, the price had passed the 38.20% Fibonacci retracement level of the 2020 low and high levels at 1,837.43.
On Tuesday, the metal reached the resistance of the 55-day simple moving average. This technical level should be passed before advancing onto the 1,900.00 mark.
Daily Candle Chart
Traders take profit
On Friday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long.
On Monday, the sentiment was 66% long. A part of traders had taken profits.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 65% to buy the metal.