The resistance of the 1,935.00 level failed on Monday. Moreover, by the middle of Tuesday's trading, the rate had confirmed the level as support and started a surge.
The surge was expected to test the November high levels, which were located from 1,953.00 to 1,965.70.
The first week of the year is bound to have notable data releases. The top among them are the release of the US Federal Open Markets Committee Meeting Minutes and the US monthly employment data sets.
On Tuesday, at 15:00 GMT, a minor move could be caused by the release of the US ISM Manufacturing PMI.
On Wednesday, the mentioned FOMC Meeting Minutes are set to be released at 19:00 GMT.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
The near term future depended on whether or not the resistance of the November high levels in the 1,953.00/1,965.70 zone.
In the case of the zone providing resistance and holding, the commodity price should either trade sideways near the 1,950.00 mark or decline. If the metal declines, it would look support in the 1,945.00 and 1,935.00 level, which previously provided both support and resistance.
Meanwhile, in a scenario where the metal passes the November high levels, the price could find support in round price levels and August and September high levels
Hourly Chart
On the daily candle chart, the price has broken the resistance of the pattern, which guided the rate since August. In addition, on Monday, the pair had pierced the resistance of the 23.60% Fibonacci retracement level at 1,928.61.
In the meantime, note that the channel up pattern, which captures the metal's December surge, remains intact. This pattern could continue to guide the rate in January.
In addition, note where the August and September high levels are located at.
Daily Candle Chart
Sentiment is unchanged
Since January 4, the sentiment on the Swiss Foreign Exchange was 58% bullish, as 58% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 52% to buy the metal.