Watch out for the US inflation data. On Wednesday, the US Producer Price Index is set to be published at 12:30 GMT.
Also on Wednesday, the US Federal Reserve will publish the FOMC Meeting Minutes. The minutes could reveal more information about the US monetary policy. The publication is scheduled for 18:00 GMT.
On Thursday, at 12:30 GMT, the US Dollar will react to the combination of the US Consumer Price Index and the weekly Unemployment Claims data. Markets will be looking at this release as the top one of the week.
XAU/USD short-term forecast
A potential decline of the commodity price is expected to look for support first in the 1,852.80/1,855.40 zone. Below the zone, take into account the 50-hour simple moving average. If the 50-hour SMA does not act as support, the metal could reach the 1,844.00/1,845.20 range.
In the case of a price surge, the bullion has to break the 1,863.15/1,865.50 zone, before approaching the late September high level zone at 1,877.40/1,879.90. However, note that the October high level trend line could slow down an upwards move.
XAU/USD daily charts review
On the daily candle chart, note the broad large scale channel down pattern. The pattern's support line has been broken. Meanwhile, zoom out to see the 2023 low levels and the support zone near 1,800.00.Daily Candle Chart
Gold traders benefit from surge
On Monday, the Swiss Foreign Exchange, traders were 75% bullish on gold, as that proportion of open Gold positions were long.
In the meantime, pending orders in the 1000 point range around the current price are 59% to buy.
By mid-Tuesday, traders were 74% long and orders were 57% to buy. It appears that a majority of Dukascopy traders were gaining form the surge.