Fundamental view:

Gold moved up and down against the greenback during the course of the week. The risk-averse market environment at the beginning of the week extended a helping hand to the precious metal. On Monday, The only data from the US showed that Factory Orders increased by 1.2% on a monthly basis in August but this reading received no market reaction. The US Senate passed the bill to raise the debt ceiling by $408 billion through November and easing concerns over a possible default. Moreover, Russian President Vladimir Putin said that they will be ramping up gas output to ease the pressure on energy prices in Europe and provided an additional boost to risk sentiment.

The  US Economy has reported that Nonfarm Payrolls (NFP) rose by 194,000 in September. This reading is far less than the expectation of 500,000 and triggered a USD selloff. However, the underlying details of the publication revealed that August’s print got revised higher to 366,000 from 235,000 and the Unemployment Rate declined to 4.8% from 5.2%. But the yellow metal failed to take the advantage of that.              

The major economic events deciding the movement of the pair in the next week are JOLTS Job Openings at Oct 12, FOMC Minutes at Oct 13, Initial Jobless Claims, EIA Crude Oil Stocks Change at Oct 14 and Retail Sales monthly report at Oct 15 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.95% higher than the previous week. Maintaining high at 1781.3 and low at 1745.7 showed a movement of 356 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1776.8 may open a clean path towards 1796.9 and may take a way up to 1812.4. Should 1741.2 prove to be unreliable support, the XAUUSD may sink downwards to 1725.7 and 1705.6 respectively. In H4 chart bullish shark pattern favors prospects of a bullish trend. And Bullish engulfing formation exerts the expectation of uptrend for the pair.