The yellow metal found resistance in the 1,740.00 level, which was enough for it to decline. The decline was only slowed down by the 55-hour simple moving average.
However, eventually the SMA failed. By mid-day on Friday, the metal had reached the 1,700.00 mark.
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on all USD traded assets.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy.
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
If the 1,700.00 mark provides support, the metal's price could trade sideways or retrace back up to the 100 and 200-hour simple moving average near 1,710.00.
On the other hand, a failure to provide support could result in a decline to the recent low levels of 1,690.00 and 1,680.00.
Hourly Chart
On the daily candle chart, the metal could find resistance in the 50.00% Fibonacci retracement level at 1,763.74. This level provided the commodity with support in late November and February.
In the meantime, the June low level of 1,672.39 has been marked on the chart. This level could provide support.
Daily Candle Chart
Traders buy gold
Since Wednesday, the sentiment on the Swiss Foreign Exchange was bullish, as 70% of open position volume was long.
On Friday, the situation changed, as 73% of volume was long. Note that the gold sentiment is largely bullish at all times due to long term holders.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 52% to sell the metal.
Previously, on Wednesday and Thursday, the orders were 84% to buy. It appears that traders bought the dip.