Fundamental view:

Gold struggled to find direction in the first half of the week and fell on Wednesday but later clinged on its gain in the second half of the week. As it was expected, the Fed left its benchmark interest rate, the target range for federal funds, unchanged at 0%-0.25% and had unveiled that it will start reducing asset purchases by $15 billion per month starting mid-November. The dollar showed its strength and against many major currencies but gold managed to gain traction amid falling T-bond yields. US Statistics reported that Nonfarm Payrolls rose by 531,000 in October, surpassing analysts’ estimate of 425,000. The dollar managed to preserve its bullish bias after this data but gold stayed resilient with the 10-year yield breaking on Friday. 

As per the recent survey, Analysts see room for gold prices to move higher, a few still note that the market faces significant overhead resistance. For gold to regain its luster and attract new momentum, prices have to ultimately push above $1,835 an ounce, according to some analysts.              

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Nov 08, Initial Jobless Claims, EIA Crude Oil Stocks Change, Federal Budget Balance at Nov 10, JOLTS Job Openings and Michigan Consumer Sentiment at Nov 12 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.44% higher than the previous week. Maintaining high at 1818.3 and low at 1758.6 showed a movement of 597 pips.

In the upcoming week we expect XAU/USD to show a bullish trend. The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1838.0 may open a clean path towards 1858.0 and may take a way up to 1897.7. Should 1778.3 prove to be unreliable support, the XAUUSD may sink downwards 1738.6 and 1718.6 respectively. In H4 chart Extended-W pattern formation frames bullish outlook. Hammer formation raises expectation of uptrend for the pair.