Fundamental view:

The yellow metal made impressive gains against the greenback this week. Disappointing growth data from China soured the market mood and helped the dollar in return in the starting of the week. As the rally in US stocks picked up, gold gathered bullish momentum and climbed to fresh weekly highs above $1,790. The data from the US on Thursday, showed that the weekly Initial Jobless Claims fell to the lowest level since March 2020 at 290,000 and the S&P 500 Index notched a new record high of 4,551.

And finally at the end of the week the benchmark 10-year US Treasury bond yield pushed higher, but, despite that, the dollar struggled to find demand as a safe haven. Top Federal Reserve officials expressed concerns about extended high inflation and noted that it could force the central bank to raise rates sooner than anticipated. Fed Governor Christopher Waller said that he thinks that rate increases are “still some time off” despite thinking the central bank should begin tapering its bond-buying program before year-end. Amidst all these catalyst, gold had a good week.

The major economic events deciding the movement of the pair in the next week are CB Consumer Confidence Index at Oct 26, Core Durable Goods Orders monthly report, EIA Crude Oil Stocks Change at Oct 27, GDP quarterly report, Initial Jobless Claims at Oct 28 and Michigan Consumer Sentiment at Oct 29 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.73% higher than the previous week. Maintaining high at 1813.7 and low at 1760.1 showed a movement of 536 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 1817.1 may open a clean path towards 1842.2 and may take a way up to 1870.7. Should 1763.5 prove to be unreliable support, the XAUUSD may sink downwards 1735.0 and 1709.9 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.