Next week, the top event of them all is set to take place. On Wednesday, at 18:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate.
XAU/USD short-term forecast
A move above 1,949.00 and 1,950.00 might stop at the February high level at 1,960.00. Higher above, note the upper trend line of the channel up pattern, which captures the commodities recent surge.
On the other hand, a decline of the commodity price is expected to look for support in the 1,930.00 level, the lower trend line of the channel pattern and the 50-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the metal is approaching the high level zone of 2020 and 2023.Daily Candle Chart
Traders are short
On Friday, gold traders were bearish, as 57% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 62% to sell.