Various technical support levels could not cause a surge of the metal on Monday. Instead the metal decline to test the 1,650.00 level.
Meanwhile, note that at the 1,650.00 level the commodity price met with the support of an ascending wedge pattern.
There will be only one event that could impact the XAU/USD rate.
On Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT.
Meanwhile, the week's historical data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
On Monday, the XAU/USD exchange rate reversed south from the upper boundary of the rising wedge pattern. During today's morning, the rate was testing the lower pattern line.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. In this case it is likely that the rate could target the upper channel line located in the 1,710.00 area.
However, note that the exchange rate is pressured by the 55-hour moving average near 1,675.00. Thus, a breakout south could occur. Note that the rate would have to surpass the 200-hour SMA near 1,642.00.
Hourly Chart
On the daily candle chart, the rate trades in the borders of two channel up patterns. Meanwhile, the daily simple moving averages had been left behind the rate. This indicates that the metal is overbought.
Daily Chart
Traders are short on gold
Since Friday, the Swiss Foreign Exchange gold sentiment was 65% short.
On Tuesday, the sentiment declined to 64% short.