Gold has retreated and found support in the hourly simple moving averages near the 1,465.00 level. At the start of the second part of Tuesday's trading, the commodity price was recovering after bouncing off the support.
It was expected that the surge of the metal would reach the resistance of the pivot point at 1,475.18.
Economic Calendar Analysis
On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
XAU/USD short-term forecast
On Monday, the XAU/USD exchange rate tested the lower boundary of the short-term ascending channel at 1,457.00. During today's morning, the rate tried to surpass the resistance level — the monthly S1 at 1,475.18.
Note that yellow metal is supported by the 55-, 100– and 200-hour moving averages, currently located circa 1,467.00. Thus, it is likely that some upside potential could prevail in the market.
However, if the mentioned resistance holds, it is likely that gold could consolidate against the US Dollar in the short run.
If the given support does not hold, it is likely that the price for gold could drop lower than 1,460.00 due to the lower channel line.
Hourly Chart
On the daily candle chart, take into account that the rate has close by the resistance of the 55-day simple moving average at 1,494.65 and the 100-day SMA at 1,480.55.
Daily Chart
Traders remain long on gold
Since last Wednesday, 57% of volume was in long positions. Namely, the SWFX sentiment was bullish.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were bullish – 80% of orders were to buy and 20% to sell.