Since the start of this week's trading, the price for gold has remained near the 1,730.00 level.
However, on Tuesday morning, the rate had shortly pierced the resistance of the 1,735.00 level. Moreover, it was not retracing down to the support of the 55-hour simple moving average near 1,724.00.
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on all USD traded assets.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy.
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
In the near term future, the metal was expected to continue to trade sideways until it would be approached by the support of the 55-hour simple moving average. The SMA could cause a surge. In addition, the 100-hour SMA could provide additional support for a potential surge.
On the other hand, a failure of the two SMAs could result in a decline to the 200-hour simple moving average near 1,713.00.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
Daily Candle Chart
Long sentiment decreases
On Monday, the sentiment on the Swiss Foreign Exchange was bullish, as 70% of open position volume was long.
On Tuesday, 69% 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 79% to buy the metal.