This week, all attention will be paid to the US Federal Reserve Rate Statement on Wednesday at 18:00 GMT. It is set to set the tone for the rest of the central banks and the global economy.
In addition, note that on Thursday, the markets will be watching the US Advance quarterly Gross Domestic Product data at 12:30 GMT.
XAU/USD short-term forecast
In the case of a surge of the commodity price, gold might encounter resistance in the 1,743.85/1,752.60 zone. However, the 1,735.00 and 1,740.00 levels could slow down a potential move higher.
Meanwhile, a decline of the commodity is likely to find support in the 1,715.00 level and the combination of the 100 and 200-hour simple moving averages. Below the 1,715.00 level, the 1,697.40/1,700.25 range is expected to act as support.
XAU/USD daily charts review
On the daily candle chart, historical support zones and low levels can be observed, as they are marked. Below the 2021 low level note the supporting trend line of the 2022 descending channel pattern.Daily Candle Chart
Traders are mostly long on gold
On Tuesday, the sentiment on the Swiss Foreign Exchange was 70% bullish. Namely, 70% of open position volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price, pending trade orders were 52% to buy the precious metal.