Fundamental view:

Gold fell in the last week as optimism among investors developed for the greenback. Positive economic data out of the United States put pressure on the instrument last week.

The two biggest unknowns for next week is the U.S. fiscal package, which is still nowhere close to being passed, and the U.S.-China trade talks, which are restarting and could, trigger some major volatility.

The major economic events deciding the movement of the pair in the next week are Crude Oil Inventories, FOMC Meeting Minutes, OPEC-JMMC Meetings at Aug 19, and Unemployment Claims at Aug 20 and Flash Manufacturing PMI at Aug 21 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.10% higher than the previous week. Maintaining high at 2049.8 and low at 1862.4 showed a movement of 1874 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 2041.1 may open a clean path towards 2139.1 and may take a way up to 2228.5. Should 1853.6 prove to be unreliable support, the XAUUSD may sink downwards 1764.3 and 1666.2 respectively. In H4 chart Ascending Triangle breakout favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.