Since the start of Monday's trading hours, the yellow metal has been trading above the support of the 200-hour simple moving average and the 1,850.00 level.
In the meantime, resistance was provided by the 1,860.00 level and two technical levels that strengthened it.
On Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement at 19:00 GMT.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
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
The XAU/USD exchange rate has revealed a rising wedge pattern.
From a theoretical perspective, it is likely that the rate could reverse north from the lower pattern line and trade upwards within the following trading session. The price for gold could target the upper pattern line circa 1,880.00.
In the meantime, it is unlikely that the price for gold could breach the predetermined pattern south in the short term due to the support provided by the 200-hour SMA near 1,851.00.
Hourly Chart
On the daily candle chart, the rate is now supported by the 200-day moving average near 1,845.00. If the resistance of 100-day moving average near 1,880.00 does not hold, the price for gold could rise to 1,900.00.
Daily Candle Chart
Traders remain long on gold
Since Monday, the sentiment on the Swiss Foreign Exchange was bullish, as 58% of open position volume was long.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 68% to buy the metal.