The XAU/USD exchange rate broke the lower line of the rising wedge pattern.
It is likely that gold could gain support from the 55- and 100-hour SMAs and appreciate against the US Dollar in the short run.
Economic Calendar Analysis
The first week of August is going to be relatively busy on the economic calendar.
On Wednesday, the US ADP Non-Farm Employment Change data is set to be issued at 12:15 GMT. Additionally, the US ISM Non-Manufacturing PMI survey results are set to be published at 14:00 GMT.
On Thursday, the US Unemployment Claims data is going to be published at 12:30 GMT.
On Friday, the US Employment data set release could be in the spotlight. The release is scheduled to 12:30 GMT.
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate broke the lower line of the rising wedge pattern. During Tuesday morning, the rate was testing the support provided by the 55-hour SMA near 1,973.00.
It is likely that yellow metal could gain support from the 100-hour moving average near 1,966.00 as well. Thus, it is likely that some upside potential could prevail in the market.
Meanwhile, note that the rate could face the resistance at the 1,990.00 level. Thus, it is likely that the price for gold could consolidate in the short run.
Hourly Chart
On the daily candle chart, the metal has reached a new historical high level, as the 1,912.40 level was broken.
Meanwhile, note that gold is trading far above the 55-, 100- and 200-day moving averages, thus, it is likely that yellow metal is overbought.
Daily Candle Chart
Traders remain short
On Tuesday, on the Swiss Foreign Exchange the sentiment was bearish, as of total open position volume 56% was short.
Meanwhile, in the 1000-pip range around the metal's price the orders were 83% to buy.