The yellow metal has surged above the 1,305.00 level on Tuesday.
The commodity price is expected to reach the 1,310.00 level, which is expected to once more provide resistance to the rate, as it did during the previous week.
This week will be busy for fundamental announcement traders. Both the central banks and various statistics offices are set to make various announcements.
On Wednesday, at 09:30 GMT the UK Consumer Price Index will be released. This data release also is expected to be ignored by the markets due to the Brexit politics.
On the same day, at 18:00 GMT the Federal Reserve will publish their FOMC Statement, Economic Projections and the Federal Funds Rate. Moreover, the event will be followed by the FOMC Press Conference.
This event is above all else during this week, as the FOMC sets the value of the US Dollar. In general, the rest of the world's central banks just adapt to the Federal Reserve.
On Thursday, all attention will be on the UK events. At 09:30 GMT the UK Retail Sales will be published. Afterwards, at 12:00 GMT the Bank of England will announce their official Bank Rate and Monetary Policy Summary. The BoE in general is expected to react to the recent Brexit developments and the Federal Reserve.
On Friday, there will be two notable data releases. At 08:30 GMT the German Markit PMIs will be released. They are expected to cause a significant impact on the EUR pairs.
The last event of the week will be the Canadian CPI and Core Retail Sales release at 12:30 GMT.
For more information watch this week's economic calendar analysis stream.
XAU/USD short term forecast
During Monday's trading session, the yellow metal was supported by the 100-hour simple moving average to end the trading session at 1302.00. On Tuesday morning, the rate was located at the 1,305.92 mark.
In regards to the near-term future, it is expected, that the 55-hour and the 100-hour simple moving averages will support the rate to push it to the 1,308.00 level.
Hourly Chart
On the daily chart the rate has broken a strong resistance cluster, which is located from 1,290.00 to 1,301.00.Meanwhile, the 55-day simple moving average was located at 1,303.15. It had previously provided both resistance and support. Note that at that level there is impact felt from the technical level.
In regards to further above resistance, the most close by was the monthly pivot point at 1,321.03.
Daily Chart
Traders continue to short the metal
Since Monday, 57% of the open position volume on the Swiss Foreign Exchange remained short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders were set up to sell the metal, as 58% of orders were set to sell.