On Tuesday morning, the XAU/USD exchange rate was testing the upper boundary of the medium-term descending channel.
From a theoretical perspective, it is likely that gold could depreciate against the US Dollar.
Economic Calendar Analysis
This week there will be one data release, which might impact the price of gold through a value adjustment of the USD.
On Thursday, October 24, the US Durable Goods Orders data will be released at 12:30 GMT.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate declined to the 1,484.00 level. During Tuesday morning, the rate was testing the upper boundary of the medium-term descending channel at 1,488.00.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the price for gold could target the 1,480.00/1,482.00 range.
It is unlikely that a breakout north from the given channel could occur, as yellow metal is also pressured by the 55-, 100- and 200-hour moving averages in the 1,488.86/1,491.20 area.
Hourly Chart
Daily Chart
Traders remain neutral
On Tuesday, 51% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were almost neutral – 54% of orders were to sell and 46% to buy.