The hourly simple moving averages managed to hold last week and caused a surge late on Friday. Although, the surge was stopped by the psychological resistance of the 1,420.00 level.
In general, this level was expected to be tested again.
The Federal Reserve released the US FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.
According to the official release: "Investors' concerns about downside risks to the economic outlook weighed on financial markets over the intermeeting period. Market participants cited negative news about international trade tensions and, to a lesser extent, soft U.S. and foreign economic data as factors that contributed to these developments.
Nominal Treasury yields posted notable declines and the expected path of policy shifted down considerably over the period. Equity prices declined, on net, and corporate bond spreads widened. However, financing conditions for businesses and households generally remained supportive of economic growth."
Gold prices this week can be affected by one data release. US Retail Sales will be published on Tuesday at 12:30 GMT.
For more information watch this week's Economic Calendar Analysis
XAU/USD short-term forecast
Gold has made an attempt to surge, which was stopped by the psychological resistance of the 1,420.00 level.
During Tuesday's trading session, the rate was expected to surge, as it was supported by the hourly simple moving averages and there was no technical resistance as high as the 1,430.00 level.
Although, watch the resistance of round levels like the 1,420.00 and 1,425.00. They might slow down price surges.
Hourly Chart
On the daily chart, it can be observed that the metal still remains below the August 2013 high level, which stopped the metal's massive June surge.
Daily Chart
Short sentiment remains intact
Since the middle of Friday, 67% of open gold position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 1000 base point range around the current metal's price the orders were bullish - 63% of orders were set to buy.