On Wednesday, at 18:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate.
XAU/USD short-term forecast
A decline of the US Dollar is set to result in resumption of the metal's surge. In this case scenario, the 2,000.00 mark would once again act as resistance.
On the other hand, a decline of the commodity price is set to look for support in previous resistance levels. Namely, the February and January highs are most likely going to keep gold up at 1,960.00 and 1,949.00. In addition, note the 100-hour simple moving average.
XAU/USD daily charts review
On the daily candle chart, the metal has passed above the high level zone of 2020 and 2023. The zone was observed to have started to act as support.Daily Candle Chart
Traders are short
On Tuesday, gold traders were bearish, as 60% of open positions were short.
Meanwhile, pending orders in the 1000-pip range were 70% to buy.