On Monday morning, the rate was getting squeezed in between the 55 and 200-hour simple moving averages, respectively, at 1,501.50 and 1,510.75.
Economic Calendar Analysis
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time.
Also, the US Crude Oil Inventories data release at 14:30 GMT could have an impact on the price for gold.
XAU/USD short-term forecast
Gold began this week's trading above the 1,500.00 mark. However, additional gains were being limited by the technical resistance of the 200-hour simple moving average just above the 1,510.00 level.
Meanwhile, the commodity price was being supported by the 55-hour SMA at 1,501.00.
In general, the price was expected to get squeezed in between these levels before resuming its surge.
Hourly Chart
On the daily candle chart, the price for gold has reached the support of a long term channel up pattern.
The support of the pattern began to keep the rate up on Friday and had continued to do so by the middle of Monday's trading.
Daily Chart
Short position decrease continues
On Friday morning, 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Tuesday's London trading hours 54% of open gold position volume was in shorts.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 77% of orders were to buy and 23% to sell.