As better than expected US employment data was released on Friday, the yellow metal's price plummeted due to the anticipated strength of the US Dollar.
The Bureau of Labor Statistics released the US Non-Farm Employment Change data, which came out better-than-expected of 2509K compared with the forecast of negative 7750K.
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a move below normal volatility.
XAU/USD short-term forecast
The fundamental decline of the yellow metal paused at the support of the S1 simple monthly pivot point at 1,679.34. In theory, the price should trade sideways just above the pivot point.
However, if the pivot point would not manage to hold, the rate would have no technical support as low as 1,628.06. In this case, the round price levels could stop the price's decline.
Hourly Chart
On the daily candle chart, the metal has passed the support of the 55-day simple moving average. It appeared to be broken. Due to that reason the next support for the price could be the 100-day SMA, which on Friday was located near the 1,642.40.
Daily Candle
Long sentiment increases
Since Thursday, on the Swiss Foreign Exchange 58% of open position volume was in long positions.
In addition, in 1000 pip range around the current metal's price, 75% of set up pending orders were set to buy the metal. On Thursday, 68% were to buy,