Given, that yellow metal is pressured by the 55-, 100- and 200-hour SMAs, it is likely, that gold could depreciate against the US Dollar in the short term.
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
During Friday, the XAU/USD exchange rat traded sideways around the psychological level at 1,510.00. During today's morning, the rate declined to the 1,500.00 level.
Yellow metal could depreciate against the US Dollar within the following trading session, as it is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1,505.81/1,514.86. Note, that the nearest support level is the monthly R2 at 1,487.41.
If the given moving averages do not hold, it is likely, that the exchange rate could extend gains. However, it is unlikely, that the price for gold 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, currently located in the 1,505.95/1,514.43 range, it is likely, that some downside potential could occur.
Weekly Chart
Traders are short
On Monday, 66% 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 strongly bullish- 90% were set to buy, and 10% of orders were set to sell.