This week, various events will impact the markets. In general, fundamentals are set to impact the currencies.
On Tuesday, at 15:00 GMT, the Consumer Board Consumer Confidence index is set to reveal how the consumers are looking into the future.
On Wednesday, the ADP Non-Farm Employment Change, JOLTS Job Openings and ISM Manufacturing PMIs might cause moves in the USD. The releases will occur at 13:15 GMT and 15:00 GMT.
Afterwards, at 19:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate. The central bank is expected by the markets to increase its interest rate from 4.50% up to 4.75%. The announcement will be followed by a press conference of the Chairman of the Federal Reserve Jerome Powell at 19:30 GMT.
On Friday, the US monthly employment data will be published at 13:30 GMT. The release will consist of Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
XAU/USD short-term forecast
If the commodity price recovers from the support zone, it could face resistance in the 1,920.00 mark and the three hourly moving averages near 1,925.00/1,930.00. Higher above, note previous notable round price levels like 1,940.00 and 1,950.00.
However, a move below the support zone might result in the price looking for support near 1,885.00, 1,880.00 and 1,870.00 these levels managed to impact the price in early December.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the late 2021 high level zone of 1,900.00/1,910.00. Meanwhile, above the 1,950.00 level take into account the high level zone of late 2020 and early 2021 at 1,957.85/1,965.70.Daily Candle Chart
Traders have been shorting the decline
On Monday, gold traders were short, as 54% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 71% to sell.
On Tuesday, traders were still short, but some had closed short positions, as 53% of volume was short. Pending orders were 60% to buy.