This week, there are two times to look at the economic event calendar.
On Tuesday, at 14:00 GMT, the CB Consumer Confidence index could impact the markets through the US Dollar. Namely, a good reading would indicate that US consumers continue to spend and inflation is set to continue to increase, which would require additional USD monetary tightening.
On Friday, at 12:30 GMT the Core Personal Consumption Expenditure Price Index is bound to make an impact, as the head of the Federal Reserve Jerome Powell revealed last week that he is watching this index as a measure for inflation not the Consumer Price Index.
XAU/USD short-term forecast
A resumption of the decline of the metal's price might continue from one round price level to the next one until the 1,600.00 mark would be reached.
In the meantime, a recovery of gold could encounter resistance not only in the 1,640.00 and 1,645.00 levels, but also the 50-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the price has passed below the 2021 and 2022 low level zone at 1,675.00/1,680.00. On September 19 it was observed that the previous support zone has turned into resistance.Daily Candle Chart
Traders are long
On Monday, the sentiment on the Swiss Foreign Exchange was 67% bullish. Namely, 67% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 93% to sell the precious metal.
On Tuesday, positions were 66% long and orders were 73% to sell.