All of the financial markets will be watching the US Federal Reserve Federal Funds Rate publication on Wednesday at 20:00 GMT. Note the time difference in the release, compared to the usual. The US has already switched to summer daylights savings time.
On Thursday, the US Services and Manufacturing sector Purchasing Managers Indices might impact the financial markets. However, recent releases of the data had minor impact.
XAU/USD short-term forecast
The upcoming event could change direction of the metal. However, if the Fed rate announcement does not impact the markets, gold could return below 2,150.00 and continue downwards in the marked channel down pattern.
On the other hand, a surge of the commodity price has to break the 50, 100 and 200-hour simple moving averages and the upper trend line of the channel, before testing the early March high levels.
XAU/USD daily charts review
On the daily candle chart, the exact 2023 high level is marked. It is the 2,146.70, where the metal found resistance before returning back below 2,000.00. Most recently, the level has turned into support, as it was forecast last week.Daily Candle Chart
Gold traders are shorting
Before the Federal Reserve events, 74% of Dukascopy traders were short, as that proportion of open position volume was in short positions.
In the meantime, pending orders in the 1000-pip range around the current price were 71% to buy the metal.