During Tuesday's morning trading hours, the yellow metal's price bounced off the resistance of the 55-hour simple moving average and began a decline, which was approaching the 1,900.00 level.
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 some downside potential could prevail in the market, as yellow metal is pressured by the 55-, 100– and 200-hour moving averages in the 1,930.00/1,950 area.
A potential target for a decline would be the round price level of 1,900.00.
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, 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
Since Monday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 60% was long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 74% to buy.