This week, on Tuesday, watch the publication of the United States Producers Price Index at 12:30 GMT. This data release will provide an insight into US inflation situation. Note that producer price increases are usually passed on to consumers.
On Thursday, the US Retail Sales data will reveal whether total sales of consumer goods hae continued to increase. Note that higher retail sales might be due to higher prices not higher amount of goods sold.
XAU/USD short-term forecast
A move below the 2,435.00/2,440.00 range could result in the price looking for support in the 2,430.00 level and the 200-hour simple moving average. Further below, the 2,420.00 mark is set to act as support.
If the price once again moves higher, the 2,450.00 level and the 50-hour SMA near 2,460.00 level might act as resistance. Higher above, the August highs are expected to hold as resistance at 2,475.00/2,480.00.
XAU/USD daily charts review
On the daily candle chart, the metal found support in the 50 and 100-day simple moving averages, which have been the cause of the latest recovery.Daily Candle Chart
Traders remain short
On Wednesday, 73% of volume was in short positions. Meanwhile, in the 1000 point range around the latest price, the pending orders were 100% to sell the metal.
By mid-Monday, the postions were 74% bearish. In the meantime, pending orders were 75% to sell.