The recovery of the yellow metal's price continued to recover on Tuesday.
During the recovery, it passed the resistance of the 55 and 100-hour simple moving averages and the 1,700.00 mark.
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
Yesterday, the XAU/USD exchange rate reversed north from the monthly S1 at 1,679.34. During Tuesday morning, the rate exceeded the 1,700.00 level.
It is likely that yellow metal could gain support from the 55– and 100-hour SMAs in the 1,700.00 area and appreciate against the US Dollar in the short term.
Meanwhile, note that the exchange rate would have to exceed the 200-hour SMA and the monthly PP in the 1,720.00 area. If the given resistance holds, it is likely that gold could consolidate against the Greenback in the short run.
Hourly Chart
On the daily candle chart, it might appear that the 55-day SMA provided the support to the metal's surge. However, that is not the case, as it was broken on Friday. Afterwards, the rate traded in limbo around it without being impacted by the technical level.
Daily Candle
Traders remain long
Since Thursday, on the Swiss Foreign Exchange 58% of open position volume was in long positions.
Meanwhile, in 1000 pip range around the current metal's price, 58% of set up pending orders were set to sell the metal.