On Tuesday, the yellow metal's price was testing the resistance of the 1,900.00 level, which it reached during the morning hours.
Future scenario forecasts were based upon what would happen at this level. However, note that the fundamental information on the ongoing US Elections is bound to crash technical charts.
Economic Calendar Analysis
US Elections on Tuesday are bound to take away all attention from the macroeconomic data releases. However, there are things to note.
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate raised to the resistance level—the monthly PP at 1,901.26.
If the predetermined resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case the price for gold could target the support level—the monthly S2 at 1,873.98.
On the other hand, the exchange rate could gain support from the 55– and 100-hour SMAs, as well the monthly S1 in the 1,883.00/1,890.23 range. Thus, gold could appreciate against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the yellow metal has moved above the resistance of the 23.60% Fibonacci retracement level and the 100-day simple moving average near 1,891.00. Due to that reason these levels could provide technical support.
In the meantime, the pair faces the resistance of the 55-day SMA and the 38.20% Fibonacci retracement level at 1,916.80.
Daily Candle Chart
Traders are long on Gold
On Tuesday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 64% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 72% to buy the metal.