On Monday morning, the XAU/USD exchange rate pierced the lower line of the rising wedge pattern.
Given that yellow metal is pressured by the 55-, 100- and 200-hour moving averages, it is likely that a breakout south could occur in the nearest future.
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
XAU/USD short-term forecast
On Friday, the XAU/USD exchange rate tried to surpass the resistance formed by the 55– and 100-hour SMAs near 1,737.00. During today's morning, the rate pierced the lower line of the rising wedge pattern.
Note that yellow metal is also pressured by the 200-hour SMA near 1,733.00. Thus, it is likely that a breakout south could occur, and the price for gold could decline below 1,720.00.
Meanwhile, from a theoretical point of view, it is likely that some upside potential could prevail in the market, and the rate could trade along the lower pattern line.
Hourly Chart
On the daily candle chart, it was spotted on Wednesday that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line. This trend line provided resistance to the metal on last Monday.
Daily Candle
Traders are neutral on gold
On Monday, trader open position volume on the Swiss Foreign Exchange was 52% long.
Traders remain relatively neutral on gold.