In general, the commodity price was expected to be pushed down by the simple moving averages.
Economic Calendar Analysis
Meanwhile, take into account that this week the FOMC Meeting Minutes are set to be published at 18:00 GMT on Wednesday.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate tried to surpass the resistance formed by the 55-, 100– and 200-hour SMAs located in the 1,502.03/1,508.53 range. During today's morning, the rate was still testing the given resistance.
If the given moving averages hold, it is likely, that bears could prevail in the market in the short term. In this case, it is unlikely, that the price for gold could tumble lower than the monthly R2 at 1,487.41.
If the given moving averages do not hold, yellow metal could extend gains against the US Dollar. However, it is unlikely, that the exchange rate could exceed the monthly R3 at 1,521.59.
Hourly Chart
The massive scale pattern of the weekly candle chart has been broken. The metal continues to surge. As this pattern has been broken, there is no resistance to the metal.
Note, that the 55-, 100- and 200-period SMAs are currently located in the 1,505.95/1,514.43 range, it is likely, that some downside potential could occur.
Weekly Chart
Traders are still short
On Wednesday, 67% of 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 the orders were bullish - 61% were set to buy, and 39% of orders were set to sell.