Fundamental view:

Gold bears are taking a hiatus amid the US dollar’s pullback. The yellow metal witnessed weakness against dollar in the last week. Most of the sell-off in the gold price is primarily down to the strength in the dollar index that we have seen the last week

Amidst the greenback gaining strength, the yellow metal will see a downtrend in the upcoming week.

The major economic events deciding the movement of the pair in the next week are CB Consumer Confidence Index at Sep 29, ADP Nonfarm Employment Change, GDP quarterly report, EIA Crude Oil Stocks Change at 30 Sep, ISM Manufacturing PMI at Oct 01, and Nonfarm Payrolls at Oct 02 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.91% lower than the previous week. Maintaining high at 1955.6 and low at 1848.7 showed a movement of 1069 pips.

In the upcoming week we expect XAU/USD to show a bearish trend.  The Instrument is trading below the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout below 1823.8 may open a clean path towards 1782.9 and may fall down to 1717.0. Should 1930.6 prove to be unreliable resistance, the XAUUSD may raise upwards to 1996.5 and 2037.5 respectively. In H4 chart the formation of the descending scallop favors the prospects of bearish trend. Also to be noted Bearish harami adds to the expectation of bearish trend.