During early Tuesday's trading hours the yellow metal's price managed to pass the resistance of the 1,975.00 level.
By the middle of the day, the price had reached the resistance of the 1,990.00 level. In the meantime, it was spotted that the 1,985.00 mark was providing support.
Economic Calendar Analysis
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move.
Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
XAU/USD short-term forecast
From the one hand, it is likely that some upside potential could prevail in the market. In this case the price for gold could target the 2,010.00/2,020.00 area.
From the other hand, it is likely that a reversal south could occur. Note that yellow metal could gain support from the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 1,945.00/1,969.00 range.
Hourly Chart
On the daily candle chart, the price has passed the resistance of a 61.80% Fibonacci retracement level at 1,977.55. The rate no longer faces resistance from retracement levels.
Daily Candle Chart
Traders remain long
On Monday, on the Swiss Foreign Exchange the sentiment was long, as of total open position volume 58% was long.
By the middle of Tuesday's trading hours, the sentiment was 57% long.
Meanwhile, in the 1000-pip range around the metal's price the orders were 73% to buy.
Previously, orders were 85% to buy.