Fundamental view:

Gold showed a mixed trend in the last week. Fiscal stimulus deal has been pushing gold prices higher, while pessimism about a deal held it back. With time running out toward Election Day, the next bout of cash to fuel gold prices mostly depends on the outcome. When President Donald Trump completed his U-turn – from cutting off talks with Democrats to stating he wants a larger deal than them, gold advanced. The same happened when House Speaker Nancy Pelosi expressed optimism about striking an accord.              

The major economic events deciding the movement of the pair in the next week are New Home Sales at Oct 26, Core Durable Goods Orders monthly report, CB Consumer Confidence Index at Oct 27, EIA Crude Oil Stocks Change at Oct 28, GDP quarterly report at Oct 29, and Core PCE Price Index yearly report at Oct 30 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.09% lower than the previous week. Maintaining high at 1931.4 and low at 1894.3 showed a movement of 371 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 downside. A solid breakout above 1924.3 may open a clean path towards 1946.4 and may take a way up to 1961.4. Should 1887.1 prove to be unreliable support, the XAUUSD may sink downwards 1872.1 and 1850.0 respectively. In H4 chart bullish shark pattern formation favors prospects of a bullish trend. Also to be noted harami pattern formation exerts the expectation of uptrend for the pair.