On Tuesday morning, the XAU/USD exchange rate breached the rising wedge pattern south.
It is likely that the rate could gain support from the psychological level at 1,720.00 and trade sideways.
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate tested the lower line of the rising wedge pattern. During Tuesday morning, the rate breached the given pattern south.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the rate could target the psychological level at 1,700.00.
Meanwhile, yellow metal could gain support from the psychological level at 1,720.00. If the given level holds, it is likely that gold could consolidate against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, it was spotted on Wednesday that the high levels of August 26, February 21, March 9 and April high levels can be connected in a resistance trend line. This trend line provided resistance to the metal on last Monday.
Daily Candle
Traders are neutral on gold
Since Monday, trader open position volume on the Swiss Foreign Exchange was 52% long.
Traders remain relatively neutral on gold.