Fundamental view:

Gold traded high compared to greenback in the previous week. In the absence of high-tier macroeconomic data releases and fundamental developments, the USD’s market valuation drove XAU/USD’s movements at the initial of the week.

On the other hand while testifying before the House Select Subcommittee on the Coronavirus Crisis, Powell adopted a less-concerned tone with regards to price pressures and said that a substantial part of the overshoot in inflation was from categories directly affected by reopening.

“We’ve seen a lot of volatility and a lot of drivers, like the Fed going back and forth,” said Gainesville Coins precious metals expert Everett Millman.              

The major economic events deciding the movement of the pair in the next week are CB Consumer Confidence Index at Jun 29, ADP Nonfarm Employment Change, EIA Crude Oil Stocks Change at Jun 30, Initial Jobless Claims, ISM Manufacturing PMI at July 01 and Nonfarm Payrolls at July 02 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 4.40% lower than the previous week. Maintaining high at 1794.8 and low at 1763.9 showed a movement of 309 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1796.0 may open a clean path towards 1810.9 and may take a way up to 1826.9. Should 1765.1 prove to be unreliable support, the XAUUSD may sink downwards 1749.1 and 1734.2 respectively. In H4 chart shark pattern formation favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.