At 11:00 GMT on Tuesday, the price of gold began to plummet, as it quickly reached the 1,790.00 mark. It was spotted during the decline that round price levels were providing short term support.
In regards to the future, it was possible that the price would end its decline at the early February low level at 1,785.00.
On Wednesday, at 13:30 GMT, the US Retail Sales and Core Retail Sales could cause a move. However, at the same time, the US Producer Price Index and Core Producer Price Index are set to be published.
If both data sets reveal a positive or negative surprise, compared to the market forecast, the impact could be combined. On the other hand, the data could contradict one another and cancel out the effect of an impact.
On the same day, at 19:00 GMT the FOMC Meeting Minutes PDF document will be released. Note that the impact of the meeting minutes occurs slowly not suddenly, as the market participants read and interpret the meeting minutes.
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
The yellow metal's price was expected to reach for the support of the early February low level at 1,785.00.
If the support of the low level holds, the rate could retrace back up to the 55, 100 and 200-hour simple moving averages, which kept the price down since Friday. Moreover, the recent decline could have been partially caused by the resistance of the 200-hour SMA.
On the other hand, if the price declines below 1,785.00, the December low level of 1,765.00 could be reached.
Hourly Chart
On the daily candle chart, the metal has bounced off the resistance of the 55 and 200-day simple moving averages, which were located just above the 1,850.00 level.
Daily Candle Chart
Traders are long
On Tuesday, the sentiment on the Swiss Foreign Exchange was bullish, as 66% of open position volume was long.
On Monday, the sentiment was 64% long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 77% to buy the metal.