Fundamental view:

Despite the greenback traded high, Gold managed to traded high. Escalating geopolitical tensions between the US and China along with the increasing number of coronavirus Delta variant cases impacted the market sentiment at the beginning of the week. The Fed’s minutes of its July policy meeting revealed some policymakers saw it appropriate to start preparing for asset tapering soon.

The US Department of Labor announced on Thursday that the Initial Jobless Claims fell to the lowest level. Overall the yellow metal showcased a positive trend against dollar.              

The major economic events deciding the movement of the pair in the next week are Existing Home Sales at Aug 23, Core Durable Goods Orders monthly report, EIA Crude Oil Stocks Change at Aug 25, GDP quarterly report, Initial Jobless Claims at Aug 26 and Fed Chair Powell Speech at Aug 27 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.91% higher than the previous week. Maintaining high at 1795.4 and low at 1770.8 showed a movement of 246 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading above the 50 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1793.6 may open a clean path towards 1806.8 and may take a way up to 1818.2. Should 1769.0 prove to be unreliable support, the XAUUSD may sink downwards 1757.6 and 1744.4 respectively. In H4 chart bullish bat pattern formation favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.