Economic Calendar Analysis
On Friday, at 13:30 GMT the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
Next week, the US Consumer Price Inflation data is set to be published on Tuesday at 13:30 GMT. The inflation is set to reveal whether the Federal Reserve is successful in its policy at reducing inflation.
On Wednesday, the top event of them all will take place. At 19:00 GMT, the US Federal Reserve will release its Federal Open Market Committee Statement and Economic Projections. The central bank is expected to hike its base interest rate from 4.00% up to 4.50%.
On Thursday, at 13:30 GMT, the US Retails Sales data and Empire State Manufacturing Index might cause an adjustment in the value of the US Dollar.
The week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data at 14:45 GMT.
XAU/USD short-term forecast
A continuation of the surge of the commodity price could encounter resistance in the 1,800.00 level and the 1,803.30/1,809.90 range.
However, a decline is set to look for support in the 50, 100 and 200-hour simple moving averages near 1,775.00/1,780.00. Further below, 1,764.00/1,766.15 zone might once again stop a decline.
XAU/USD daily charts review
On the daily candle chart, the 200-day simple moving average remains as support. Meanwhile, price still faces the 1,787.05/1,808.15 resistance zone.Daily Candle Chart
Traders remain long
On Friday, 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 63% to sell the precious metal.
On Thursday, the open positions were 60% long and orders were 69% to sell.