On Wednesday morning, the XAU/USD exchange rate tested the psychological level at 1,494.00.
It is likely that gold could decline against the US Dollar in the short term. In this case, yellow metal could face the support of the 55-, 100- and 200-hour SMAs.
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
On Tuesday, the XAU/USD exchange rate traded sideways in the 1,484.00/1,488.00 area. During today's morning, the rate jumped to the 1,494.00 level.
On the one hand, bears could prevail in the market, and the price for gold could reverse south in the nearest future. However, it is unlikely that that it could drop lower than 1,489.00 due to the support formed by the 55-, 100– and 200-hour SMAs.
On the other hand, yellow metal could continue to extend gains against the US Dollar within the following trading session. In this case the exchange rate could target the resistance level formed by the monthly PP at 1,498.29.
Hourly Chart
Daily Chart
Traders go short
On Wednesday, 73% 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 bearish – 57% of orders were to sell and 43% to buy.