Gold failed to pass the resistance of the 1,515.00 level. The failure resulted in a decline, which by the middle of Tuesday's trading session had reached below the 55 and 100-hour simple moving averages.
The rate was set to test the support of the 1,500.00 mark and the 200-hour simple moving average, which was located at 1,501.25.
FOMC Statement and Federal Funds Rate
The Federal Reserve released the US Federal Funds Rate data, which came out in line with the expectations of 1.75%.
According to the official release: "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent."
Economic Calendar Analysis
This week there is only one event scheduled that could impact the rate.
On Tuesday, the US ISM Non-Manufacturing PMI is set to be released at 15:00 GMT.
Meanwhile, take into account that the next week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
XAU/USD short-term forecast
On Monday, the XAU/USD exchange rate failed to surpass the psychological level at 1,515.00. During today's morning, the rate was testing the support provided by the 100-hour SMA at 1,504.71.
If the given support level holds, it is likely that yellow metal could extend gains against the US Dollar in the short run. Note that the exchange rate would have to surpass the resistance formed by the 55-hour SMA at 1,510.16.
If the given resistance holds, it is likely that gold could consolidate against the Greenback within the following trading session. Also, it is unlikely that the price for gold could go downwards due to the support formed by the 200-hour SMA, as well the monthly PP, located circa 1,500.00.
Hourly Chart
On the daily candle chart, the commodity price is being supported by the 55-day simple moving average, which was located at the 1,505.50 mark.
In the meantime, the rate was being approached by the 100-day simple moving average, which on Tuesday was at 1,476.83.
Daily Chart
Sentiment remains unchanged
Since Friday, 55% of open gold 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 pending orders were bullish– 57% of orders were to buy and 43% to sell.