At mid-day, the price was finding support in the 1,845.00 level. Economic Calendar Analysis
On Tuesday, at 13:30 GMT, the US Producers Price Index data will reveal, how high is the inflation at the production level.
Possibly the top event of the week will take place on Wednesday at 19:00 GMT, as the US Federal Open Markets Committee Meeting Minutes will be published. The Meeting Minutes provide an insight to the decisions of the US Federal Reserve.
On Thursday, the US Unemployment Claims could cause an adjustment of the USD value.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
A decline below the 1,845.00 mark would have to also pass the support of the 100-hour simple moving average. Below the SMA, the most close by known support was the 1,830.00 mark, which was being approached by the 200-hour simple moving average. Further below, note the 1,825.00 and 1,815.00 levels. Both of these levels have acted as support and resistance.
On the other hand, a recovery of the price is first set to face resistance at 1,850.00/1,851.60. Afterwards, the 1,865.00 mark is expected to act as resistance, before the 1,880.00 would be reached.
XAU/USD daily charts review
On the daily candle chart, the yellow metal has broken out of the triangle pattern, which had guided the price since October. A break-out up needs to pass the resistance of the November high level zone, before booking new highs.On Tuesday, the November high level was shortly passed, as the price did not properly touch the 1,880.00 mark at that time.
Daily Candle Chart
Short sentiment continues to grow
On Tuesday, the sentiment on the Swiss Foreign Exchange was 63% bearish, as 63% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 75% to buy the precious metal.
On Monday, the sentiment was 59% short and pending orders were 55% to buy.