Since Monday, the yellow metal's price has continued to fluctuate in the range between the 1,590.00 and 1,610.00 levels. However, there was an update on the metal's hourly candle chart.
Namely, the 55-hour SMA had reached the price at the middle of Tuesday's GMT trading hours.
Some might consider watching the ADP Non-Farm Employment Change on Wednesday at 13:15 GMT.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be published.
On Friday, the US employment data will be released at 13:30 GMT.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
XAU/USD short-term forecast
Yesterday, the XAU/USD exchange rate failed to surpass the resistance level formed by the monthly PP at 1,607.96. During Tuesday morning, the rate was testing the 55-hour SMA near 1,603.00.
If the given resistance holds, it is likely that yellow metal could depreciate against the US Dollar in the short term. In this case the price for gold could decline to the 1,570.00 level.
On the other hand, the exchange rate could trade sideways, trying to surpass the given resistance. It is unlikely that bulls could prevail, and the rate could exceed above 1,630.00 due to the resistance formed by the 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the pierced channel up pattern continues to hold. The lower trend line of the pattern was pierced on Friday. However, the rate returned to trade in its borders.
In addition, during the recent decline, the rate was influenced by the support of the 55-day simple moving average, which has caught up to the price.
Daily Chart
Traders are short on gold
On Monday, the Swiss Foreign Exchange gold sentiment was 60% short. Namely, 60% of open position volume was in short positions.
By the middle of Tuesday's trading, the sentiment was 58% short.
Meanwhile, in the 1000 base point range around the current metal's price the pending orders were neutral– 50% of orders were to buy and 50% to sell.
Previously, the orders were 65% to buy and 35% to sell.