Fundamental view:

Gold markets initially tried to rally during the course of the week but continue to see trouble at the $2000 level, which of course is a large, round, psychologically significant figure.

The Fed was expected to become more accommodative over the next few months, but if the labor recovery continues, we might see slightly less stimulus down the road. We expect the yellow metal to gain strength against greenback in the upcoming week.

The major economic events deciding the movement of the pair in the next week are IBD/TIPP Economic Optimism at Sep 08, Unemployment Claims, Crude Oil Inventories, Final Wholesale Inventories monthly report at Sep 10, and Core CPI monthly report at Sep 11 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.79% higher than the previous week. Maintaining high at 1992.4 and low at 1916.3 showed a movement of 761 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1980.0 may open a clean path towards 2024.2 and may take a way up to 2056.1. Should 1903.9 prove to be unreliable support, the XAUUSD may sink downwards 1872.0 and 1827.8 respectively. In H4 chart Symmetrical triangle breakout favors prospects of a bullish trend. Also to be noted Spinning top formation exerts the expectation of uptrend for the pair.