The XAU/USD exchange rate has been testing the resistance level formed by the monthly PP at 1,573.09 since Friday.
Given that the rate is supported by the 55-, 100- and 200-hour moving averages, it is likely that some upside potential could prevail.
Economic Calendar Analysis
This week, notable data releases are set to start on Tuesday.
On Tuesday, at 09:30 GMT, the UK Manufacturing Production, Monthly GDP and the Preliminary Quarterly GDP are set to be published.
Usually, the Monthly GDP and Manufacturing Production are released together. The quarterly GDP appears once every three months and causes a larger reaction than the monthly data. So, concentrate more on the pip moves on the historical table of the Preliminary GDP.
On Wednesday, at 01:00 GMT the Reserve Bank of New Zealand is scheduled to make a rate announcement. This event is expected to cause the largest move of the week.
Later in the day, the weekly US Crude Oil Inventories will be released. This week, the data will be out at 15:30 GMT.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. Last but not least, on Friday the US Retail Sales data will be out also at 13:30 GMT.
The week's event historical data tables have been published. Click on the headline below to read the article.
XAU/USD short-term forecast
On Friday, the XAU/USD exchange rate tried to surpass the monthly PP at 1,573.09. During today's morning, the rate continued to test the given level.
Note that yellow metal is supported by the 200-hour moving average in the 1,570.00 area. Thus, some upside potential could prevail in the market, and the price for gold could exceed the 1,580.00 level.
However, if the given resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case the rate could decline below the 1,565.00 mark due to support provided by the 55– and 100-hour SMAs.
Hourly Chart
On the daily candle chart, it can be observed how the rate broke the channel up pattern, which guided the rate's surge since the start of December.
Meanwhile, take into account that the metal is overbought, as indicated by daily simple moving averages, which are located near the 1,500.00 level.
Daily Chart
Traders are short on gold
On Monday, the Swiss Foreign Exchange gold sentiment was 55% short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were slightly bearish – 55% of orders were to sell and 45% to buy.