On Tuesday, the financial markets are expected to react to the US Producer Price Index and Core Producers Price Index release at 12:30 GMT.
On Wednesday, the US Retail Sales and Core Retail Sales is bound to impact the USD value at 12:30 GMT.
The top event of the month is scheduled for Wednesday's 18:00 GMT. The US Federal Reserve will publish its Economic Projections and Statement. The central bank is expected to hike interest rates. The question remains among market participants whether a 0.50% or 0.75% hike occurs.
Note that after the official announcement a press conference is scheduled for 18:30 GMT.
XAU/USD short-term forecast
If the metal finds enough support in the 1,850.00 level to resume its price surge, the 1,871.00/1,880.00 zone is expected to act as resistance. Higher above, the 1,900.00 mark is highly likely going to slow down a potential surge.
In the case of a decline of the commodity price below 1,850.00 support would first be looked for in the 1,840.00 mark and the 1,837.00 level. Further below, note the 1,825.00/1,830.00 zone.
XAU/USD daily charts review
On the daily candle chart, the price has encountered resistance in the form of the 50-day simple moving average at 1,880.00.Daily Candle Chart
Traders are long on gold
On Monday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 77% to buy the precious metal.