Gold traded sideways until AstraZeneca announced that another coronavirus vaccine is ready. This caused a drop of the yellow metal's price. Namely, it plummeted to the 1,835.00 level.
On Wednesday, at 12:30 GMT, the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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XAU/USD short-term forecast
The 1,835.00 level provided support due to the 61.80% Fibonacci retracement level of the 2020 high and low levels. Future forecasts were based upon whether or not this level holds.
It is likely that the yellow metal's price would consolidate by fluctuating sideways above the 1,835.00 level.
On the other hand, if the support of the 1,835.00 level and the 61.80% Fibonacci retracement level failing, the rate would continue its gradual decline from one round price level to another.
Hourly Chart
On the daily candle chart, the yellow metal has passed the support of the 1,850.00 level and could head for the psychological support of the round price level of the 1,800.00 mark and the technical support of the 200-day simple moving average. The SMA was located just below the 1,800.00 level.
Note that the 1,850.00 level provided the metal with support in late September and during the metal's Pfizer vaccine drip.
Daily Candle Chart
Traders remain long
Since Thursday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 67% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 90% to buy the metal.