This week, the markets could react to the publication of the US Federal Reserve Meting Minutes on Wednesday at 18:00 GMT.
On Thursday, the top event of the week will take place. At 12:30 GMT, the US Consumer Price Index is bound to impact all currency pairs via an adjustment of the value of the US Dollar to the inflation numbers.
On Friday, the US Producer Price Index numbers will reveal how inflation is doing at the producer level. This rate might cause a move, if it deviates a lot from the market forecast. However, due to it being released a day after the consumer inflation, it is unlikely that the PPI numbers create a major market reaction.
XAU/USD short-term forecast
If the consolidation ends with a surge, the pair would test the resistance of the 2,685.00 level that marks the all-time high level.
However, a decline below 2,640.00 is expected to look for support in the 2,625.00 level, before approaching the 2,600.00 mark.
XAU/USD daily charts review
On the daily candle chart, the metal found support in the 50 and 100-day simple moving averages, which have been the cause of the resumed surge of the price.Most recently, after a long period of consolidation, the metal has broken out of the consolidation rate to the upside.
There is not much to add. Gold keeps heading higher, as the USD is loosing value due to rate cuts, and there are signs of risks to the global economy. Both aspects fuel the surge.
Daily Candle Chart
Traders remain short
On Wednesday, 68% of volume was in short positions.
Meanwhile, in the 1000 point range around the latest price, the pending orders were 83% to sell the metal.
On Monday, traders were 66% short. At the same time, the pending orders were 56% to sell.