Fundamental view:

Investors once again believe gold is a safe-haven trade.  Overnight, gold prices surged after President Donald Trump and first lady Melania Trump tested positive for coronavirus.  After a steady rally this week, gold is now comfortably above the $1,900 level. 

There is a lot of confusion in the marketplace after positive test of President Donald Trump and first lady Melania Trump for coronavirus. Still, analysts remain bullish on gold next week, aside from a few caveats to watch out for.      

The major economic events deciding the movement of the pair in the next week are ISM Non-Manufacturing PMI at Oct 05, JOLTS Job Openings, Fed Chair Powell Speech at Oct 06, EIA Crude Oil Stocks Change at Oct 07, and Initial Jobless Claims at Oct 08 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.97% lower than the previous week. Maintaining high at 1917.1 and low at 1848.9 showed a movement of 681 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading above the 50 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1930.5 may open a clean path towards 1957.9 and may take a way up to 1998.7. Should 1862.4 prove to be unreliable support, the XAUUSD may sink downwards 1821.6 and 1794.2 respectively. In H4 chart W-pattern breakout favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.