Fundamental view:

Gold had showed a uptrend against the greenback in this week eventhough Fed sentiment and US political drama has led the way. An intensifying global energy crisis, the China Evergrande debt issue and the Fed’s tapering fears kept investors on edge has benefited the greenback.  The several appearances by Fed Chair Jerome Powell and speeches from his colleagues intensified expectations of sooner-than-expected tapering as the market began pricing in a rate hike in 2022, supported the US dollar during the first half of the week.

On the other hand, The US political drama also started coming into play in the second half of the week which weighed on investor sentiment and helped the yellow metal to maintain its bullish momentum. US Senate Majority Leader Chuck Schumer said Thursday that lawmakers agreed to extend government funding through December 3, averting an imminent shutdown. Although, the debt ceiling in mid-October still lurks amid the political wrangling. Amidst all the catalysts playing a lead role, the yellow metal showed a uptrend.

The major economic events deciding the movement of the pair in the next week are OPEC Meeting at Oct 01, ISM Non-Manufacturing PMI at Oct 05, ADP Nonfarm Employment Change, EIA Crude Oil Stocks Change at Oct 06, Initial Jobless Claims at Oct 07 and Nonfarm Payrolls at Oct 08 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.28% lower than the previous week. Maintaining high at 1764.3 and low at 1721.5 showed a movement of 428 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 1775.9 may open a clean path towards 1791.5 and may take a way up to 1818.7. Should 1733.1 prove to be unreliable support, the XAUUSD may sink downwards 1705.9 and 1690.4 respectively. In H4 chart falling wedge breakout favors prospects of a bullish trend. Also to be noted Hammer formation further exerts the expectation of uptrend for the pair.