After reaching the 1,325.00 level on Monday, gold was retreating on Tuesday down to the technical support levels near 1,315.00.
At the 1,315.00 level the 55-hour simple moving average was the main support to the commodity price.
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.
On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
XAU/USD short term forecast
On Tuesday, the yellow metal was standing at the support of the 55-hour SMA. Meanwhile, a new pattern was discovered that represents the surge of March.
Due to the fact that the rate bounced off the resistance of the pattern, a decline down to the levels near 1,310.00 is expected.
The commodity will have to pass each one of the hourly SMAs one by one to decline to the target.
Hourly Chart
On the daily chart, the commodity price reached a previously set target by touching the monthly pivot point at 1,321.03.In regards to the future, the 55-day SMA, which was located at 1,304.40 on Friday, was expected to push the price even higher.
Daily Chart
Traders continue to short the metal
Since Monday, 57% of the open position volume on the Swiss Foreign Exchange remained short.
Meanwhile, the trader set up pending orders in a 1000 base point range around the metal's current price reveal additional information.
Namely, trader pending orders were bullish, as 66% of set up orders were set to buy.
It can be assumed that the short trader positions have close by stop losses and take profits.