On Friday, the yellow metal's price broke the descending wedge pattern. The break-out was followed by a sharp decline to the 1,720.00 mark. However, a recovery followed after reaching this level.
By the middle of the day's European trading, the metal was testing the resistance of the round price level of 1,760.00.
On Monday, the US ISM Manufacturing PMI could cause a move.
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate.
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
In the near term future, the price was expected to reach for the resistance of the 55-hour simple moving average near 1,770.00 and afterwards the 100 and 200-hour SMAs near 1,785.00.
If the 55-hour SMA provides resistance, the rate could decline back to the 1,720.00 mark.
Hourly Chart
On the daily candle chart, the descending wedge can be better observed. Meanwhile, take into account that the metal has left the daily simple moving averages near 1,860.00.
The next support on the daily candle chart was the lower trend line of the channel down pattern, in the borders of which the rate has traded since August.
Daily Candle Chart
Traders are long on gold
On Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 72% of open position volume was long.
On Monday, 71% of volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 59% to sell the metal.