Due to the metal being located below the cluster of resistance, a scenario of a decline was being favoured.
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
On Tuesday morning, the yellow metal's price declined below the support of the 1,500.00 level, which was strengthened by the 55 and 100-hour simple moving averages.
Meanwhile, the 200-hour simple moving average was approaching the commodity price from above. Due to that reason a decline of the commodity price was more likely than a 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 Tuesday's trading.
The daily and the hourly candle charts are contradicting one another.
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 53% 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 – 74% of orders were to buy and 26% to sell.