Gold has continued to surge, as it has reached the levels just below the 1,320.00 mark.
In general, if the commodity price surges above the monthly pivot point at 1,319.79, it will have no technical resistance as high as 1,333.00
This week will have various data releases and monetary policy announcements occurring.
On Monday, the ISM Manufacturing PMI will be published at 14:00 GMT. The event has caused moves from 15 to 40 pips during 2019.
On Tuesday, big move catchers might want to watch the Reserve Bank of Australia Cash Rate announcement at 04:30 GMT. This event has caused moves from ten to sixty seven pips since December 2018.
On the same day, at 09:00 GMT the European CPIs are expected to cause a move of approximately of ten pips on the EUR/USD. It is unlikely that the move will be larger, but remember that anomalies occur all the time in Forex.
On Wednesday, a minor move might be caused by the ISM Non-Manufacturing PMI at 14:00 GMT.
On Thursday, all attention will be on the European Central Bank. At 11:45 GMT the Monetary Policy Statement will be published. On the release the EUR/USD has moved from 10 to 35 pips.
The event will be followed by the ECB press conference at 12:30 GMT. During the questions and answers session at the end of it the EUR is bound to make sharp moves.
At the same time the Canadian Trade Balance will be published. This event has caused moves from ten to sixty pips.
The week will end with the Canadian and US employment data being published at 12:30 GMT. This event consists of five different data sets being released.
For more details watch the Economic Calendar Overview. Moreover, feel free to ask questions for details.
XAU/USD short-term forecast
During Friday, the XAU/USD exchange rate surpassed important psychological level at the 1,300.00 mark. During Monday's morning, the rate reached the upper boundary of the short-term ascending channel at 1,316.34.
From a theoretical point of view, it is expected, that a reversal south could occur in the nearest future. In this case, the rate has to surpass the Fibonacci 23.60% retracement at 1,309.31.
If the given support level holds, it is likely, that gold could trade sideways between it and the upper channel line.
It is unlikely, that the price for gold could jump higher than 1,319.79 due to the resistance of the monthly R1.
Hourly Chart
On the daily candle chart it can be observed that the rate broke the resistance of the both long term patterns.Most likely after the fundamental moves end a full review of the charts will be conducted.
Daily Chart
Most traders short gold
The Swiss Foreign Exchange sentiment was 69% short on Friday. It was caused by short term long positions being closed and some traders wanting to take advantage of a possible retracement down.
By the middle of Monday's trading, 72% of open position volume was in short positions. Long positions were closed and short positions had been open.
Meanwhile, in the 1000 base point range around the current price 56% of pending orders were set to sell the metal.