During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at 12:30 GMT.
On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
XAU/USD short-term forecast
If the price recovers and breaks the descending pattern, resistance could be encountered not only in round price levels, but also the 50, 100 and 200-hour simple moving averages near 1,867.00, 1,874.00 and 1,878.00.
However, a decline below the support zone at 1,850.60/1,854.50 would result in the price reaching February levels, when the metal shortly traded below 1,800.00.
XAU/USD daily charts review
On the daily candle chart, the metal's price has reached the support of the 200-day simple moving average. Namely, the 200-day SMA has been ascending and the bullion has been declining. The moving average could stop the price from declining.Daily Candle Chart
Traders set up pending buy orders
On Monday, the sentiment on the Swiss Foreign Exchange was 62% bullish. Namely, 62% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 54% to buy the precious metal.
On Tuesday, traders were 62% bullish and pending orders were 75% to buy.