The yellow metal remains in the range between the two support zones that were marked last week. From above, the rate is facing resistance from 1,745.55 to 1,747.30. From below, a support zone is located at 1,722.20/1,725.30.
In the meantime, it was spotted on Monday that the metal's price was being impacted for short time periods by he 55, 100 and 200-hour simple moving averages. Moreover, the resistance of the 200-hour SMA and the 1,735.00 level caused the Monday's decline to the support zone of 1,722.20/1,725.30.
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released.
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
By the middle of Monday's trading, the price was testing the support of the described zone. If the zone holds, the price could retrace back up and find resistance in the mentioned SMAs.
On the other hand, in the case of a decline, the 1,720.00 and 1,700.00 would most likely provide support.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, on Monday, the March high levels were connected and a parallel line was set at the March low level. This revealed a channel up pattern, which could have a significant role.
Daily Candle Chart
Traders remain long
Since Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 66% of open position volume was long.
On Monday, traders had become 68% long.
Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 66% to buy the metal.