The 1,640.00 price level continues to hold, as the yellow metal trades sideways between the 1,640.00 and support levels near 1,620.00.
On Monday, the rate was approached by the additional technical support of the 100-hour SMA. In theory, the simple moving average should push the commodity price up.
During this week, data can be ignored, as the fundamental background has changed due to the coronavirus.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
XAU/USD short-term forecast
Since last Tuesday, the XAU/USD exchange rate has been consolidating in the 1,6200 area.
Note that yellow metal could gain support from the 55– and 100-hour moving averages, and extend gains against the US Dollar in the short run. In this case the exchange rate would face the resistance formed by the monthly R1 at 1,668.23.
However, if the price for gold fails to exceed the psychological level at 1,640.00, it is likely that it could maintain its consolidation.
Hourly Chart
On the daily candle chart, the commodity price trades above the daily simple moving averages. The 55-day SMA was located at 1.586.67. The 100-day SMA was at 1,542.32, and the 200-day SMA fluctuated near 1,510.00.
Daily Chart
Traders are long on gold
On Friday, the Swiss Foreign Exchange sentiment was 54% long. Namely, 54% of open gold position volume was in long positions.
On Monday, the sentiment was 55% long, as traders remained slightly bullish.