This week, the top event is scheduled for Thursday. At 13:30 GMT, the United States Consumer Price Index is set to be published. This data set reveals how prices have changed at the consumer level. It is watched by the Federal Reserve to determine the future course of the US monetary policy.
On Friday, at 13:30 GMT, inflation at the producer level will be revealed, as the US Producer Price Index will be published. It is considered that producer level inflation eventually turns into consumer inflation, as producers increase consumer goods prices.
Lower than expected or at forecast inflation is expected to cause a decline of the US Dollar, as it shows that the Federal Reserve can cut interest rates. On the other hand, a return of inflation is set to cause a surge of the USD, as the Fed has to keep rates high or even return to rate cuts.
XAU/USD short-term forecast
A surge of the commodity price is set to face the 2,050.00 level and the zone that is marked around it. Meanwhile, note the descending 200-hour simple moving average. Higher above, the 2,060.00 level might act as resistance, before the price reaches the high level zone near 2,075.00.
In the case of a decline of the metal's price, the 2,020.00 and 2,010.00 levels are set to act as support. All of them have shown to be capable of impacting the price. It is clear that gold traders set their orders around round levels.
XAU/USD daily charts review
On the daily candle chart, most recently the 2021 and 2022 high level range at 2,065.30/2,082.80 has been ignored by the metal.Meanwhile, take into account the approaching 50-day simple moving average. It appears to have acted as support on Monday.
Daily Candle Chart
Gold traders are short
On Tuesday, 62% were short, as that proportion of open position volume was in short positions.
In the meantime, pending orders in the 1000-pip range around the current price were 70% to sell the metal.
During Wednesday's trading, positions were 60% short and orders were 73% to sell.