Fundamental view:

The recent update that Iran and China on verge of a huge deal and China forges new trading partnerships with other countries impacts dollar negatively and along with Spike in US Covid-19 cases              

And Fed officials raising concern about the sustainability of the economic recovery makes safe haven asset to struggle. Also Historic EU deal supported for gold.

Amid all the catalysts impacting the USD negatively, last week portrayed a bullish trend for XAU/USD.

The major economic events deciding the movement of the pair in the next week are Durable Goods Orders monthly report at Jul 27, CB Consumer Confidence at Jul 28, FOMC Press Conference at Jul 29, Advance GDP quarterly report, Unemployment Claims at Jul 30, Revised U9oM Consumer Sentiment at Jul 31 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 5.05% higher than the previous week. Maintaining high at 1906.5 and low at 1805.5 showed a movement of 1010 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1936.1 may open a clean path towards 1972.1 and may take a way up to 2037.7. Should 1835.7 prove to be unreliable support, the XAUUSD may sink downwards 1770.2 and 1734.8 respectively. In H4 chart breakout of a Pennant pattern favors prospects of a bullish trend. Also to be noted Three white soldiers formation exerts the expectation of uptrend for the pair.