This week, the market might move due to multiple releases of economical data in the United States, however no significant volatility should be expected.
However, despite these releases, significant volatility is not expected, as traders may remain cautious or wait for more impactful developments before making major moves. The data may provide direction, but unless there is a major surprise or shift in market expectations, price swings are likely to remain moderate.
The top events of the week will be the release of the Consumer Price Index (CPI) and Retail Sales (MoM). The CPI is a key indicator of inflation, providing insights into the changes in the cost of goods and services, which can significantly influence market sentiment and expectations for future monetary policy. Retail Sales data, on the other hand, reflects consumer spending trends and is an important gauge of the overall health of the economy.
XAU/USD short-term forecast
This weeks macro economical data should provide trend for Gold for the short, near and the long term.
A decline of the metal might look for support in the price level of 2500.00 or lower.
XAU/USD daily charts review
On the daily candlestick chart, gold has been trading within the 2665.00 to 2605.00 range. Positive news related to gold would likely create momentum to the upside, increasing the probability of testing the 2723.00 resistance level.Daily Candle Chart
Traders remain short
On Monday, 70% of the trading volume was concentrated in short positions, signaling a strong bearish sentiment in the market as of January 13th. This indicates that a majority of traders are anticipating further declines in price and are positioning themselves accordingly.
Additionally, within a 1000-point range around the current price of the metal, 80% of pending orders were set to sell. This suggests that a significant portion of market participants are expecting downward movement and are preparing to take advantage of any price declines. The high proportion of sell orders reflects the prevailing cautious or bearish sentiment in the market, with traders likely anticipating continued weakness in the near term.