The surge of gold found resistance in the 1,815.00 level, which caused retracement down to the 1,805.00 level. Note that the 1,805.00 mark was strengthened by the support of the 200-hour simple moving averages.
Economic Calendar Analysis
During the week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
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
It is likely that yellow metal could gain support from the 200-hour moving average near 1,805.00. Thus, the rate could re-test the upper line of the falling wedge pattern circa 1,825.00 in the short run.
If the predetermined pattern holds, the exchange rate could reverse south and target the support provided by the 55– and 100-hour moving averages in the 1,790.00 area.
Hourly Chart
On the daily candle chart, the rate has tested the support of the November low level of 1,765.30 and a 50.00% Fibonacci retracement level at 1,763.75.
Daily Candle Chart
Long sentiment is intacts
On Tuesday, the sentiment on the Swiss Foreign Exchange was bullish, as 68% of open position volume was long.
On Monday, 70% of volume was long. These positions were assumed to have gained during the recent surge.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 65% to buy the metal.
Previously, the orders were 56% to sell.