On Monday morning, the yellow metal's price reached below the 55-hour SMA, which began to provide resistance. In theory, the SMA could push the price down.
In the meantime, more notable developments had taken place on the daily candle chart. The metal has passed the support line of the post-coronavirus recovery channel up pattern.
Economic Calendar Analysis
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
It is likely that yellow metal could remain under pressure of the given moving average and trade downwards in the short run. A possible downside target is the 1,910.00/1,915.00 range.
In the meantime, it is unlikely that bulls could prevail in the market, and the price for gold could exceed the 1,950.00 mark due to the resistance formed by the 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the price of gold has pierced the lower trend line of the channel up pattern, which had guided the metal's surge since the middle of March.
In the meantime, on Friday the metal was finding support and resistance in the Fibonacci retreacement levels at 1,947.16 and 1,916.78.
Daily Candle Chart
Traders remain long
On Friday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 57% was long.
By the middle of Monday's GMT trading hours, the sentiment was 60% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 88% to buy.