This week, there are two times to look at the economic event calendar.
On Tuesday, at 14:00 GMT, the CB Consumer Confidence index could impact the markets through the US Dollar. Namely, a good reading would indicate that US consumers continue to spend and inflation is set to continue to increase, which would require additional USD monetary tightening.
On Friday, at 12:30 GMT the Core Personal Consumption Expenditure Price Index is bound to make an impact, as the head of the Federal Reserve Jerome Powell revealed last week that he is watching this index as a measure for inflation not the Consumer Price Index.
XAU/USD short-term forecast
A potential recovery of the commodity price is expected to face resistance in the 1,650.00 mark, before reaching the 1,655.00/1,660.00 zone. In addition, the 50 and 100-hour simple moving averages might act as resistance.
On the other hand, a decline of the metal is expected to look for support in the Monday's low level near 1,627.00.
XAU/USD daily charts review
On the daily candle chart, the price has passed below the 2021 and 2022 low level zone at 1,675.00/1,680.00. On September 19 it was observed that the previous support zone has turned into resistance.Daily Candle Chart
Traders are long
On Monday, the sentiment on the Swiss Foreign Exchange was 67% bullish. Namely, 67% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 93% to sell the precious metal.