Due to the event, the price for gold hit the 1,900.00 level. However, during the following hour the price retraced down to look for support in the 1,879.30/1,881.60 zone and the 50-hour simple moving average. Economic Calendar Analysis
Next week, watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
XAU/USD short-term forecast
A move below the support levels near 1,880.00 might look for additional support in the 100-hour simple moving average and the 1,875.00 level. Afterwards, note the support zone at 1,867.90/1,870.40.
Meanwhile, a resumption of the surge of the metal's price would face the 1,900.00 mark as resistance, prior to reaching new high levels.
XAU/USD daily charts review
On the daily candle chart, the metal has reached above the June high of 1,880.00. It is assumed that the June high has not held due to not being strengthened. In June, the round level caused a major retracement due to the additional resistance of the 50-day simple moving average.Daily Candle Chart
Traders are shorting gold
After the US CPI release, gold traders were short, as 53% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 92% to sell.