Fundamental view:

The yellow metal initially pulled back during the week, but benefited from broad-based US dollar weakness, as global markets cheer Fed’s lower rates for a longer period and down greenback’s haven demand.

Ultimately, the market should continue to go a lot of choppiness, but as the Federal Reserve has raised the bar again for interest rate hikes, Gold markets will continue to rally, right along with the other precious metals markets.             

The major economic events deciding the movement of the pair in the next week are ISM Manufacturing PMI at Sep 01, ADP Non-Farm Employment Change, Crude Oil Inventories at Sep 02, ISM Non-Manufacturing PMI, at Sep 03, Average Hourly Earnings monthly report, Unemployment Rate at Sep 04 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.93% lower than the previous week. Maintaining high at 1976.7 and low at 1902.7 showed a movement of 740 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 1994.9 may open a clean path towards 2022.7 and may take a way up to 2068.8. Should 1920.9 prove to be unreliable support, the XAUUSD may sink downwards 1874.9 and 1847.0 respectively. In H4 chart breakout of the symmetrical triangle favors prospects of a bullish trend. Also to be noted bullish engulfing formation exerts the expectation of downtrend for the pair.