The yellow metal has returned back to the 1,355.00 level. The surge of the metal began as soon as the last hourly simple moving average was reached and the pressure of being overbought disappeared.
The metal could reach the 1,360.00 level during the next trading sessions.
On Wednesday, at 18:00 GMT the Federal Reserve is making its FOMC Statement, Federal Funds Rate and Economic Projections. Afterwards, at 18:30 GMT the FOMC Press Conference will take place.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate traded sideways between the 55– and 200-hour SMAs, located at 1,343.30 and 1,335.93 respectively. During Tuesday's morning, the rate increased to the 1,345.00 level.
Given, that gold is supported by the given moving averages, as well the 100-hour SMA and the monthly R2, it is likely, that bulls could prevail in the market. The price for gold could target the psychological level at 1,355.00.
From the other hand, the exchange rate could trade sideways between the psychological levels, located at 1,345.00 and 1,350.00 respectively.
It is unlikely, that some downside potential could prevail in the market due to the given support.
Hourly Chart
The daily candle chart has been updated with long term patterns. In general, the rate looks like consolidating in the borders of an ascending pattern. In theory it should resume its surge by July.
Meanwhile, the daily candle simple moving averages indicate that the metal is overbought, as all of the SMAs are below the 1,310.00 level.
Daily Chart
Traders remain short on gold
Since Monday, 58% of all open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price 67% of pending orders were set to sell.