During Monday's morning, the price for gold was consolidating at the 1,425.00 level. Given, that the XAU/USD exchange rate is squeezed by 55- and 100-hour SMAs, it it likely, that it could trade sideways in the short term.
On Thursday, the US Core Durable Goods Orders data will be published at 12:30 GMT.
The week will end with the US Advance GDP data release on Friday at 12:30 GMT.
XAU/USD short-term forecast
During the previous trading session, the price for gold declined to the support level formed by the 100-hour SMA at 1,421.87.
During Monday's morning, the XAU/USD exchange rate was trying to surpass the resistance formed by the 55-hour SMA at 1,430.36.
If the given moving averages hold, it is expected, that the rate could trade sideways in the nearest future.
Otherwise, it is likely, that gold could surpass the given resistance and appreciated against the US Dollar. It is unlikely, that the rate could exceed 1,450.00 due to resistance of the upper line of the long-term ascending trend.
Hourly Chart
On the daily chart, it can be observed that the metal has pierced the resistance of the August 2013 high level at 1,434.70. The historical level was expected to provide support to the commodity price.
Daily Chart
Short sentiment remains unchanged
On Monday, 71% of open gold position volume on the Swiss Foreign Exchange was short.
As gold reaches new high levels, traders lose more and more by sticking to the short positions in expectations of a retracement down.
Meanwhile, in the 1000 base point range around the current metal's price the orders were neutral - 49% of orders were set to buy. Previously, 73% of orders were set to buy.