On Wednesday, the price for gold was pressured by the 55- and 100-hour SMAs, as well the monthly S1 and the Fibo 38.20% at 1,274.0.
If the given resistance does not hold, it is expected, that gold could reach the psychological level at 1,276.00.
During this week, there will be a couple of macroeconomic events to watch, avoid or trade.
First, the Canadian central bank will publish their interest rate on Wednesday at 14:00 GMT.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT. This event can cause a move of up to 20 base points.
The data will end on Friday, as at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the USD.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate tested the lower boundary of the falling wedge pattern located circa 1,270,00.
From a theoretical point of view, the rate should reverse north and try to surpass the resistance level formed by a combination of the 55– and 100-hour SMAs, as well the monthly S1 and the Fibonacci 38.20% at 1,273.68.
If the given resistance does not hold, it is expected, that the price for gold could reach the psychological level at 1,276.00. Otherwise, a reversal south occurs.
Hourly Chart
On the daily chart the exchange rate has support formed by the monthly S1 at the 1,274.13 mark.
Previously, the commodity price reached below the 100-day SMA.
Daily Chart
Traders short gold
On the Swiss Foreign Exchange, 73% of open position volume was in short positions.
Meanwhile, the trader set up pending orders in the 1000-base point range around the metal's current price were bearish.
Namely, 56% of all orders were to sell.