On Monday morning, the yellow metal's price passed the support of the channel down pattern and reached the 1,930.00 level. This round price level provided support to the commodity price and the bullion began to trade sideways between 1,930.00 and 1,935.00.
In the near term future, the price was expected to continue its decline.
Economic Calendar Analysis
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 13:45 the US PMIs will be released.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
It is likely that some downside potential could prevail in the market, and the price for gold could target the 1,920.00/1,925.00 area.
In the meantime, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the resistance formed by the 55-, 100– and 200-hour SMAs in the 1,950.00 area.
Hourly Chart
On the daily candle chart, the metal has failed at another attempt to pass the resistance of the 61.80% Fibonacci retracement level at 1,977.55. Moreover, the pair passed the support of the 50.00% level at 1,947.16.
On Monday, the rate was approached by the 55-day simple moving average. This technical level was strengthening the 1,930.00 level.
Daily Candle Chart
Traders remain long
On Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 55% was long.
On Monday, the sentiment was 57% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 74% to buy.