After reaching the 1,820.00 level at midnight to Monday, the yellow metal's price began a recovery. By the middle of the day's GMT trading hours, the metal had reached back up to the 1,850.00 level.
In regards to the near term future, the price could retrace back up to the hourly simple moving averages, which were located above the 1,880.00 level.
During the week there will be minor data sets published, which could cause initial reactions. Traders with close by tight stop losses should take into account the times of the macroeconomic data releases.
On Wednesday, the United States Bureau of Labor Statistics is set to publish the Consumer Price Index and Core Price Index at 13:30 GMT.
Afterwards, at 13:30 GMT, expect the weekly US Unemployment Claims.
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
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
It is likely that yellow metal could appreciate against the US Dollar within the following trading session. In this case the price for gold could face the resistance formed by the 55-, 100– and 200-hour SMAs in the 1,887.00/1,910.00 range.
In the meantime, note that the exchange rate would have to surpass the resistance level—the Fibo 23.60% at 1,860.59. If the given level holds, gold could continue to decline against the Greenback in the short run.
Hourly Chart
On the daily candle chart, the metal's decline passed the support of the 55 and 200-day simple moving averages. Moreover, the 38.20% Fibonacci retracement level at 1,837.43 has been passed.
The metal has no additional technical support on the daily candle chart, as low as the 50.00% Fibo at 1,763.74. This level provided the price with support at the end of November, when the December surge started.
Daily Candle Chart
Open positions are unchanged
On Monday, the sentiment on the Swiss Foreign Exchange was 56% bullish, as 56% of open position volume was long.
On Friday, 54% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 74% to buy the metal.
Previously, the orders were 87% to buy. The close by orders could be the stop losses of the long positions and open to go long positions.