On Monday, the yellow metal's price surged and reached the resistance of the 55 and 200-hour simple moving averages at 1,905.00.
Future forecasts were based upon whether the two technical resistance levels manage to hold the price down or not.
Economic Calendar Analysis
On Tuesday, the US Durable Goods Orders and Core Durable Goods Orders will be released at 12:30 GMT.
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. The US Advance GDP and the Unemployment Claims would be released at that time. However, recently both of them have not caused notable moves
Click on the link below to find out more about the data releases.
XAU/USD short-term forecast
On Friday, the XAU/USD breached the medium-term ascending channel.
It is likely that some downside potential could prevail in the market, as the yellow metal is pressured by the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 1,905.00/1,909.25 area.
Meanwhile, note that the exchange rate could gain support at the 1,895.00 mark. Therefore, gold could trade sideways against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, the yellow metal ended sideways trading between the Fibonacci retracement levels. Namely, the 38.20% Fibo at 1,916.78 was passed.
However, the metal encountered the resistance of the 55-day SMA, which caused the recent decline.
On Monday, the 100-day SMA had reached the price and started to provide additional technical support at the 1,882.08 level.
Daily Candle Chart
Traders are long on gold
Since Friday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 60% was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 78% to buy the metal.
The orders were 63% to buy on Friday.