The surge of the metal reached the 1,980.00 level. From this level the price began a decline, which on Tuesday reached the 1,910.00 level.
During the decline, the pair passed the support of the 55-hour simple moving average, which did not manage to stop the decline.
Economic Calendar Analysis
Notable macroeconomic events are set to start with the biggest and most important of them all, the Federal Reserve is scheduled to make a Rate Statement and Rate Announcement on Wednesday, at 18:00 GMT.
On Thursday, pay attention to the US Advance GDP and the weekly US Unemployment Claims that should be published at 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
By the middle of Tuesday's European trading hours, the metal's price had found support in the 1,910.00 level and surged to the pivot point at 1,936.76. However, it is unlikely that the pivot would slow down the surge, as it did not manage to do it previously.
It was expected that the metal would test the resistance of the 1,950.00 level and trade sideways below this level to consolidate its gains. Afterwards, as the hourly simple moving averages catch up to the metal, the surge could continue.
Hourly Chart
On the daily candle chart, the metal has reached a new historical high level, as the 1,912.40 level was broken.
Daily Candle Chart
Traders remain short
Since Monday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 59% was short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 58% to buy.
The orders were 75% to buy on Monday.