On Monday, the yellow metal was piercing the support of the December low level of 1,825.00. However, the 1,820.00 level provided support that stopped the price from declining.
By the start of the US trading hours, the commodity price had retraced back up tot eh 1,835.00 level.
On Wednesday, the US Retail Sales and US Core Retail Sales could cause a move on the chart at 13:30 GMT.
Moreover, on that day the US Flash Manufacturing and Services Producers Managers Indices or PMIs are set to be published at 14:45 GMT.
The day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
Given that yellow metal is pressured by the 55-, 100– and 200-hour moving averages in the 1,836.70/1,846.80 range, it is likely that some downside potential could prevail in the market.
In the meantime, if the predetermined resistance area does not hold, bulls could prevail in the market. In this case the price for gold could face the resistance level—the Fibo 23.60% at 1,860.59.
Hourly Chart
On the daily candle chart, the yellow metal has bounced off the resistance of the 55-day simple moving average.
On Monday, the commodity price was heading to the support of the 200-day simple moving average at 1,810.90. This level managed to slow down a decline of the metal for three days at the end of November.
In theory, the metal should once again test the resistance of the 55-day simple moving average. This technical level should be passed before advancing onto the 1,900.00 mark.
Daily Candle Chart
Traders remain long
Since Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 62% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 77% to buy the metal.