Gold is making attempts to surge through the resistance of the 1,305.00 level. It is making short lived surges above it before declining back down.
Although, the situation could change in the future, as during the second half of Wednesday's trading the 55-hour simple moving average was approaching the commodity price from below.
Wednesday will end with an above all fundamental event. The Federal Reserve Federal Open Market Committee will publish their Meeting Minutes.
In the publication the Fed will officially announced their future plans for US monetary policy.
That will be all on Wednesday. On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All of these events will be covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
XAU/USD short term forecast
Yesterday, the yellow metal broke through the monthly pivot point to end the trading session at the 1,304.00 level. On Wednesday morning, gold continued appreciating against the US Dollar to be located at the 1,304.64 mark.
In regards to the near-term future, most likely, the yellow metal will continue the surge towards the 23.60% Fibonacci retracement level at the 1,309.31 mark.
However, today's fundamental news could break the prediction to push gold to depreciate against the US Dollar to the monthly pivot point at the 1,299.43 mark.
Hourly Chart
On the daily chart the metal's surge has been stopped by the resistance of the 55-day simple moving average at 1,307.24. This levels has to be passed for the surge to resume.Daily Chart
Traders continue to short the metal
Since last Wednesday, 56% of the open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Today's trading session the sentiment had become 58% short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders in that range were set to sell in 54% of cases.