On Tuesday morning, the range was strengthened by the 200-hour simple moving average, which appeared to be pushing the price up.
Economic Calendar Analysis
On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
XAU/USD short-term forecast
An extension of the recovery, the commodity price would face the combined resistance of the 50 and 100-hour simple moving averages and the 1,785.20/1,786.30 zone. Higher above, take into account the recent high level zone at 1,803.30/1,809.90.
On the other hand, a decline of the price for gold would have to pass the 1,764.00 level, before approaching the recent low levels at 1,744.75 and 1,739.40.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the resistance of the 200-day simple moving average and is testing the 1,787.05/1,808.15 zone. The zone acted as support in the first half of 2022 and as resistance in August.On December 5, the 200-day simple moving average had turned into support, as the resistance zone had caused a decline back to 1765.00.
Daily Candle Chart
Traders are long on gold
On Monday, the sentiment on the Swiss Foreign Exchange was 55% bullish. Namely, 55% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 83% to buy the precious metal.
On Tuesday, the open positions were 57% long and orders were 53% to buy.