The decline of gold's price continues. On Tuesday, the 1,270.00 level was reached.
Moreover, the decline was showing no signs of stopping I the medium and long term.
This week's notable data will begin on Wednesday. At 08:30 GMT the UK CPI will be published. This event has caused since December 2018 moves from 11.4 to 23.1 base points on the GBP/USD.
Meanwhile, during the day, the UK Inflation Repot will be published. The time has not been set. Due to that reason a sudden surprise might occur and impact the GBP.
Afterwards, at 12:30 GMT the Canadian Retail Sales and Core Retail Sales will be released. This event is being mentioned due to the fact that it has caused a move from 21.2 to 43.3 pips on the USD/CAD.
Late on Wednesday, the top event of the month will occur. The US FOMC Meeting Minutes will be released at 18:00 GMT. On the EUR/USD it has caused moves from 10.2 to 29.1 pips since October 2018.
On Thursday, data from the European Union will come. The French and German Manufacturing and Services Purchasing Managers Index will be published. The data will be released at 07:15 and 07:30 GMT.
The German data is the top to watch of the two, as it has caused moves from 6.5 to 38.8 pips on the EUR/USD.
On Friday, the UK Retail Sales data release at 08:30 GMT is expected to cause a move on the GBP/USD from 15.6 to 24.5 pips.
The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only five to 18 pips.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate traded sideways between the Fibonacci 38.20% retracement at 1,273.68 and the 1,280.00 level.
Given that gold is pressured by the 55-hour moving average, currently located at 1,279.39, it is unlikely, that bulls could prevail in the market in the short term.
If the given support level holds, it is expected, that the price for gold could maintain its consolidation.
Otherwise, it is expected, that some downside potential could prevail in the market, and the rate could target the psychological level at 1,270.00.
Hourly Chart
The daily candle chart has been upgraded. The main update to mention is the fact that the previous descending pattern was junior to a larger channel down pattern.Due to that reason the rate is expected to gradually reach the upper trend line of the dominant pattern.
However, it can occur in various ways – by surging, trading sideways or declining.
Daily Chart
Swiss traders short gold
Since Thursday, 68% of all total open gold position volume on the Swiss Foreign Exchange was in short positions.
A majority of traders was profiting from the decline since that day.
Meanwhile, in the 1000 base point range around the current price 59% of pending orders were set to buy the metal.