Last week, the XAU/USD exchange rate revealed an ascending triangle pattern.
On Friday, the rate tested the upper pattern line. During today's morning, the rate reversed south from the given line.
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
XAU/USD short-term forecast
Last week, the XAU/USD exchange rate revealed an ascending triangle pattern. On Friday, the rate tested the upper pattern line at 1,722.00. During today's morning, the rate reversed south from the given line.
Note that yellow metal gained support from the 100– and 200-hour SMAs near 1,703.00. If the given support holds, it is likely that a reversal north could occur, and the rate could re-test the upper pattern line.
Otherwise, it is likely that bears could continue to prevail in the market in the short term. In this case the price for gold could reach the lower pattern line in the 1,695.00 area. If the given pattern holds, a reversal north could follow.
Hourly Chart
On the daily candle chart, the metal is overbought, as its price is far above the daily simple moving averages. The most close by 55-day SMA was located at the 1,645.70 mark.
Daily Candle
Traders are long on gold
Since Friday, the Swiss Foreign Exchange sentiment has been 57% long.