During early Monday's trading, the metal made a failed attempt at surging. The attempt was stopped by the resistance of the 100-hour simple moving average.
By the middle of the day, the price had returned to the 1,690.00 level's support.
On Wednesday, the US Consumer Price Index data could cause a minor move on USD assets at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
During the early Monday's trading hours, the rate had reached the support of the 1,690.00 level.
If the 1,690.00 provides support once again, the metal's price could make another attempt to pass the resistance of the 100-hour simple moving average.
On the other hand, in the case of the 1,690.00 level failing, the pair could look for support in the lower trend line of the channel down pattern, which captures the price's one month long decline.
Hourly Chart
On the daily candle chart, the metal has broken the channel down pattern, which guided it since August. If one takes into account that it was broken due to the comments of the head of the Federal Reserve, it appears that the decline of the metal could accelerate.
However, the price has found support in the 61.80% Fibonacci retracement level at the 1,690.05. In the case of this level being passed, the metal could look for support in the May and June low level of 1,672.40.
Daily Candle Chart
Traders are long on gold
On Friday, the sentiment on the Swiss Foreign Exchange was bullish, as 72% of open position volume was long.
Monday, 75% of volume was long. Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 63% to sell the metal.