The previous forecast did not became reality, as the metal's price did not reach the support of the 1,280.00 level.
Instead, the 1,282.00 was strong enough to provide the needed support for the commodity price to make another attempt to pass the resistance of the monthly pivot point at 1,287.27.
This week there are three notable events on the economic calendar that traders will watch.
On Wednesday, the markets will watch the Bank of Canada Rate Statement at 14:00 GMT. This event has caused since October 2018 moves from 67 to 93 base points on the USD/CAD.
It is currently the top creator of sudden volatility in the markets.
On Thursday, at 12:30 GMT the US Preliminary GDP will be published. This event, which is considered and shown on the calendars as a top mover, has not caused notable moves.
Since November 2017 this event has caused on the EUR/USD moves from 6.8 to 11.9 pips during the five minutes after the release. Note that a move below ten pips on the EUR/USD during five minutes happen often without any data being published.
The week will end with the Canadian GDP publication at 12:30 GMT. This event has caused moves from 21 to 64 pips since December.
XAU/USD short-term forecast
During the previous trading session, the XAU/USD exchange rate increased to the resistance formed by the monthly PP at the 1,287.27 mark. During Monday's morning, the rate was testing it.
If the given resistance level holds, it is expected, that the price for gold could reverse south. However, note, that the rate could be supported by the 55– and 200-hour SMAs, currently located circa 1,283.00.
If the given resistance does not hold, it is likely, that the price for gold could maintain its rise for the short term. A possible upside target the psychological level at 1,290.00.
Hourly Chart
The daily candle chart has been upgraded. The main update to mention is the fact that the previous descending pattern was junior to a larger channel down pattern.Due to that reason the rate is expected to gradually reach the upper trend line of the dominant pattern.
However, it can occur in various ways – by surging, trading sideways or declining.
Daily Chart
Short sentiment remains unchanged
The SWFX sentiment was 65% short since Friday.
Namely, 65% of open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current price 51% of pending orders were set to sell the metal.
Traders had removed close by buy orders that were active on Friday.