In the meantime, it was spotted that the surge of the price for gold has occurred in a channel up pattern. If the metal continues to trade in the pattern, it could consolidate up to Tuesday. Economic Calendar Analysis
On Tuesday, at 13:30 GMT, the US Producers Price Index data will reveal, how high is the inflation at the production level.
Possibly the top event of the week will take place on Wednesday at 19:00 GMT, as the US Federal Open Markets Committee Meeting Minutes will be published. The Meeting Minutes provide an insight to the decisions of the US Federal Reserve.
On Thursday, the US Unemployment Claims could cause an adjustment of the USD value.
Click on the link below to find out more about data releases of this and other currency exchange rates.
XAU/USD short-term forecast
If the price for gold surges, it would have to test the resistance of the 1,865.00 level, before booking new high levels.
On the other hand, a decline below 1,851.30 and 1,850.00 could look for support in the lower trend line of the channel up pattern, before reaching the 50 and 100-hour simple moving averages near 1,840.00 and 1,835.00.
XAU/USD daily charts review
On the daily candle chart, the yellow metal has broken out of the triangle pattern, which had guided the rate price since October. A break out up needs to pass the resistance of the November high level zone, before booking new highs.Daily Candle Chart
Short sentiment grows
On Friday, the sentiment on the Swiss Foreign Exchange was 54% bearish, as 54% of open position volume was in short positions.
Meanwhile, in the 1000-pip range around the metal's price pending trade orders were 63% to sell the precious metal.
On Monday, the sentiment was 59% short and pending orders were 55% to buy.