On Wednesday, the rate is bound to move due to the release of the Federal Open Market Committee Meeting Minutes at 18:00 GMT.
On Thursday, the US quarterly Preliminary GDP data at 12:30 GMT is set to confirm or deny whether the United States have entered a recession. A recession is defined by two consecutive quarters of decline in the Gross Domestic Product.
XAU/USD short-term forecast
If the metal continues to decline, it is expected to look for support in the combination of the 1,850.00 level and the 50-hour simple moving average. A move below these levels could result in a decline to the 1,840.00 and 1,835.00 levels.
Meanwhile, a potential recovery of the commodity price would have to pass the 1,865.00 mark, before testing the resistance of other round price levels.
XAU/USD daily charts review
On the daily candle chart, the price has broken the resistance of the 200-day simple moving average, which strengthened the 1,850.00 mark.Meanwhile, note that the metal confirmed the location of the lower trend line of the channel down pattern below the 1,800.00 level. In theory, the price should approach the zone that surrounds the 1,900.00 level.
Daily Candle Chart
Traders are bullish on gold
On Monday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 65% to buy the precious metal.