After testing the resistance of the 1,870.00 level throughout Monday, the yellow metal declined on Tuesday. By the middle of the day's European trading hours, the commodity price had reached the 1,840.00 level.
In the near term future, the price could reach for the last week's support at 1,835.00.
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate bounced off the 1,870.00 level.
Given that the yellow metal is pressured by the 55-, 100– and 200-hour moving averages in the 1,851.00/1,856.80 range, it is likely that some downside potential could prevail in the market. The rate could decline to the support level at 1,835.00.
If the predetermined support level holds, the exchange rate could reverse north and re-test the given resistance area. Otherwise, the price for gold could decline to the 1,825.00/1,830.00 area.
Hourly Chart
On the daily candle chart, the metal has started to ignore the 55 and 200-day simple moving averages, which were both passed as resistance and support levels. In the meantime, the metal was being approached by the 100-day SMA near 1,880.00.
Meanwhile, since Wednesday the price was supported by a 38.20% Fibonacci retracement level at 1,837.43.
Daily Candle Chart
Traders remain long on gold
Since Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 59% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 80% to buy the metal.