This week, the markets are looking forward for the monthly United States inflation and retail sales data. In addition, on Wednesday, the FOMC Meeting Minutes might impact the markets.
On Wednesday, at 12:30 GMT, the US Producers Price Index change will reveal inflation at the production level.
Later on, at 18:00 GMT, the Federal Reserve Federal Open Market Committee Meeting Minutes are going to provide more insight into the decisions of the US monetary policy makers.
On Thursday, the top event of the week will take place. The United States Consumer Price Index is scheduled to be published at 12:30 GMT.
On Friday, at 12:30 GMT, the US Retail Sales data could also impact the financial markets.
XAU/USD short-term forecast
An extension of the ongoing decline of gold could find support in the 1,660.00 and 1,640.00 levels, before reaching the September low levels near 1,620.00.
On the other hand, a price recovery of the commodity would have to break the resistance of the 1,685.00 level and the 200-hour simple moving average. Higher above, the 1,700.00 mark is expected to act as resistance.
XAU/USD daily charts review
On the daily candle chart, the price has pierced the upper trend line of the 2022 channel down pattern and the 50-day simple moving average near 1,715.00. Higher above, note the 100-day SMA near 1,750.00.Daily Candle Chart
Traders set up buy orders
On Monday, the sentiment on the Swiss Foreign Exchange was 61% bullish. Namely, 61% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 78% to buy the precious metal.