Prior to the event, the price for gold extended the recovery that had started after finding support in the 1,955.00 level. Economic Calendar Analysis
This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
XAU/USD short-term forecast
A continuation of the ongoing surge could be slowed down by the 1,975.00 and 1,980.00 levels, before the rate reaches the high level zone at 1,984.20/1,987.70.
On the other hand, a decline might look for support in the combination of the 1,965.00 level and the 50, 100 and 200-hour simple moving averages. Below these levels, the 1,955.00, 1,950.00 and 1,940.00 levels are capable of acting as support.
However, fundamentals and, especially, Fed rate hike are above all technicals.
XAU/USD daily charts review
On the daily candle chart, the metal has found support in the 200-day simple moving average. The moving average has caused a surge, which broke the descending channel pattern, the 50 and 100-day simple moving averages and the 1,955.00/1,965.00 range.Daily Candle Chart
Gold traders have set up sell orders
On the Swiss Foreign Exchange, traders are 52% bullish on gold, as that proportion of open Gold positions are long.
In the meantime, pending orders in the 1000 point range around the current price are 77% to sell.