XAU/USD Weekly Forecast (7th March2022 – 11th March 2022)

Fundamental view:

Gold edged higher against the US dollar during the trading course of the week and ended reaching its highest level since Nov 2020 at $1970. The War underpinned the demand of the safety haven precious asset. Leaders from all the West’s nations have asked President Vladimir Putin to put a halt to the war, but of no use. On Thursday, Putin said that he aims to reach its goals and will continue no matter what. while Putin agreed on the creation of safe corridors to evacuate civilians, he persisted in bombing Ukrainian cities. The yellow metal rallied on Friday after reports of Russia attacking the Zaporizhzhia nuclear power plant triggered another bout of flight to safety.

On the other hand, In the semi-annual testimony before the House Committee on Financial Services, Powell confirmed a 25 basis points rate hike would be appropriate in March. Additionally, Powell noted that they could consider the option of a 50 basis points rate hike later in the year. He also noted that there wouldn’t be any direct effects on the US economy from Russian sanctions but acknowledged that it was causing uncertainty on the growth outlook.

The major economic events deciding the movement of the pair in the next week are JOLTS Job Openings, EIA Crude Oil Stocks Change, WASDE Report at Mar 09, Initial Jobless Claims, Federal Budget Balance at Mar 10 and Michigan Consumer Sentiment at Mar 11.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.18% higher than the previous week. Maintaining high at 1970.7 and low at 1890.6 showed a movement of 801 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 1997.1 may open a clean path towards 2023.9 and may take a way up to 2077.2. Should 1917.0 prove to be unreliable support, the XAUUSD may sink downwards 1863.7 and 1836.9 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bullish trend. Also to be noted three outside up formation exerts the expectation of uptrend for the pair.