The surge of the yellow metal reached the 1,765.00 level, which it tested throughout Monday morning.
However, the resistance held, as the bullion's price plummeted back to 1,735.00 by the middle of the day.
This week, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT.
XAU/USD short-term forecast
In the aftermath of the retracement back to the 1,735.00 level, the bullion started to trade sideways between the mentioned level and the 1,745.00 mark.
In the case of the rate continuing to move lower, it would reach for the support of the 100-hour SMA at 1,725.95.
On the other hand, the rate could pass the 1,745.00 level, recover and once again test the 1,765.00 mark.
Hourly Chart
On the daily candle chart, the metal is overbought, as its price is far above the daily simple moving averages. The most close by 55-day SMA was located at the 1,650.00 mark.
Daily Candle
Traders are neutral on gold
On Friday, the Swiss Foreign Exchange sentiment was 52% long.
By the middle of Monday's trading hours, the sentiment was 51% short. In general, traders had remained neutral.