On Tuesday, watch the publication of the US Retail Sales at 12:30 GMT. The markets could move due to an adjustment in the USD value.
XAU/USD short-term forecast
A move above the 2,450.00 is expected to be slowed down by round price levels until the 2,500.00 mark is reached. Note that the metal has never been at these highs.
If the 2,450.00 mark provides resistance and forces the price down, the 2,440.00, 2,425.00 and 2,410.00 levels could turn into support.
XAU/USD daily charts review
Prior analysis: "The fundamental data has shown the direction for the squeeze by providing the needed strength to move the price above the 50-day simple moving average.In the near term future, the metal will test the 2,400.00 and 2,450.00 levels. The moving averages could provide support to the potential move higher."
Next target appears to be the 2,450.00 level.
Daily Candle Chart
Traders are short
Last week, 69% of traders were short, as they expected a decline. Meanwhile, pending orders were 55% to buy.
This week, more traders were short, as 75% of volume was in short positions. It appears that more and more traders expect the metal to drop.
Moreover, pending orders for gold in the 1000 point range around current price are 83% to sell.