Fundamental view:

Gold showed a slightly bullish trend against the greenback in the past week. In the absence of high-tier macroeconomic data releases in the first half of the week, hawkish Fed commentary helped the greenback stay resilient against its major rivals. Whereas Federal Reserve’s Vice Chairman for Supervision Randal Quarles said that the Fed is very mindful that they could be wrong on inflation pressures being temporary.

On the other hand, favoring yellow metal, the Unemployment Rate edged higher to 5.9% while the Labor Force Participation Rate remained unchanged at 61.6%. The USD struggled to preserve its strength following the jobs report and helped XAU/USD to show an uptrend.              

The major economic events deciding the movement of the pair in the next week are ISM Non-Manufacturing PMI at July 06, FOMC Minutes at July 07, Initial Jobless Claims, EIA Crude Oil Stocks Change at July 08 and Wholesale Inventories monthly report at July 09 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.01% higher than the previous week. Maintaining high at 1795.0 and low at 1750.5 showed a movement of 445 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 1804.6 may open a clean path towards 1822.0 and may take a way up to 1849.1. Should 1760.1 prove to be unreliable support, the XAUUSD may sink downwards 1733.1 and 1715.7 respectively. In H4 chart ascending scallop pattern formation favors prospects of a bullish trend. Also to be noted three outside up pattern formation exerts the expectation of uptrend for the pair.