Watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
XAU/USD short-term forecast
The recovery of the price for gold could once again test the resistance zone near 1,930.00. However, take into account that the 1,920.00 level has acted as short term resistance.
On the other hand, a potential decline of the commodity price would look for support in the 1,910.00 level, the 50 and 100-hour simple moving averages, before reaching the 1,896.50/1,901.50 range. Below the support range, note the 200-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the late 2021 high level zone of 1,900.00/1,910.00. Meanwhile, above the 1,950.00 level take into account the high level zone of late 2020 and early 2021 at 1,957.85/1,965.70.Daily Candle Chart
Traders remain short
Prior to the US PPI publication, gold traders were short, as 55% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 51% to sell.
On Tuesday, traders were 54% short and orders were 55% to sell.