Gold price has tested the 1,310.00 as expected. In addition, the metal's price has continued to trade afterwards in accordance with the trend patterns.
To be exact, a large scale pattern's resistance line pushed the rate down at the 1,310.00 level and was still holding during the second part of Wednesday's trading.
This week will be busy for fundamental announcement traders. Both the central banks and various statistics offices are set to make various announcements.
On Wednesday, at 18:00 GMT the Federal Reserve will publish their FOMC Statement, Economic Projections and the Federal Funds Rate. Moreover, the event will be followed by the FOMC Press Conference.
This event is above all else during this week, as the FOMC sets the value of the US Dollar. In general, the rest of the world's central banks just adapt to the Federal Reserve.
On Thursday, all attention will be on the UK events. At 09:30 GMT the UK Retail Sales will be published. Afterwards, at 12:00 GMT the Bank of England will announce their official Bank Rate and Monetary Policy Summary. The BoE in general is expected to react to the recent Brexit developments and the Federal Reserve.
On Friday, there will be two notable data releases. At 08:30 GMT the German Markit PMIs will be released. They are expected to cause a significant impact on the EUR pairs.
The last event of the week will be the Canadian CPI and Core Retail Sales release at 12:30 GMT.
For more information watch this week's economic calendar analysis stream.
XAU/USD short term forecast
During Tuesday's trading session, the yellow metal surged to the upper boundary of the medium pattern line at the 1,310.00 mark. On Wednesday morning, gold was trading between the 100-hour and the 200-hour simple moving averages at the 1,302.53 mark.
In regards to the near-term future, most likely, the 200-hour simple moving average will support the rate to push it to the 1,305.00 level.
However, today's US Federal Funds Rate, FOMC Statement release at 18:00 GMT might push the US Dollar to appreciate against the yellow metal to the 1,296.00 level.
Hourly Chart
On the daily chart the commodity has traded sideways for quite some time. Meanwhile, from a technical perspective a surge is still expected, as the metal faces no large scale resistance as far as 1,321.03The support to the rate in a surge should be provided by the 55-day simple moving average, which was located at 1,303.50.
Daily Chart
Traders continue to short the metal
Since Monday, 57% of the open position volume on the Swiss Foreign Exchange remained short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders were set up to buy, as 55% of orders were set to buy. Previously, most trader pending orders were set to sell.