The yellow metal's surge, which was started by the support of the 200-hour SMA on Thursday, eventually found resistance. Namely, the 1,745.50/1,747.40 zone provided resistance.
By the middle of Monday's trading, the commodity price had retraced down to the support 200-hour simple moving average.
On Wednesday, at 13:45 GMT the US Services and Manufacturing PMIS could cause moves.
On Thursday, the US Final GDP is set to be released at 12:30 GMT.
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
If the SMA manages to once again cause a surge, the price could again test the resistance zone above the 1,745.00 level. In the case of the 1,745.00 level being broken, the rate would find resistance in the March 18 high level at 1,755.00.
On the other hand, the 200-hour SMA could fail at providing support. In this case scenario, the pair would look for support in round price levels. Most likely the 1,720.00 and 1,700.00 levels could provide support.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
Daily Candle Chart
Long sentiment remains intact
Since Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 68% of open position volume was long.
Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 62% to buy the metal.