As expected, gold reached down to the 1,315.00 level. There it found support at and began to trade in the range between 1,314.00 and 1,318.00.
The rate was expected to break the sideways trading in the near future.
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.
On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
XAU/USD short term forecast
During Tuesday's trading session, the yellow metal traded between the 55-hour and the 100-hour simple moving averages to break the medium pattern line at 1,316.00. On Wednesday morning, gold was located above the medium pattern line at the 1,316.86 mark.
In regards to the near-term future, most likely, the 100-hour simple moving average will support the rate to help the rate to surge towards the monthly pivot point at the 1,321.03 mark.
Besides, it is expected that the yellow metal will end the trading day at the 1,318.00 level.
Hourly Chart
On the daily chart, the commodity price reached a previously set target by touching the monthly pivot point at 1,321.03.In regards to the future, the 55-day SMA, which was located at 1,304.40 on Friday, was expected to push the price even higher.
Daily Chart
Traders continue to short the metal
Since Monday, 57% of the open position volume on the Swiss Foreign Exchange remained short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders had changed. Previously, the orders were bullish, as 66% of set up orders were set to buy.
On Wednesday, 58% of all orders in the 1000 pip range were set to sell gold.