Fundamental view:

Gold markets have pulled back during the course of the week The upbeat Industrial Production and Retail Sales data from China revived hopes for a steady global economic recovery and provided a boost to market sentiment at the start of the week. Additionally, Moderna announced that its coronavirus vaccine candidate was 94.5% effective in the latest trials and noted that it will be seeking authorization for emergency use of the vaccine in the US in the coming weeks.

In the second half of the week, the disappointing Initial Jobless Claims and Retail Sales data from the US caused the market mood to sour and allowed XAU/USD to limit its losses. Additionally, the number of confirmed COVID-19 infections in the US hit a new daily high of 185,000 on Thursday and reminded investors of the potential damage on the economic recovery before a vaccine becomes widely available.

The major economic events deciding the movement of the pair in the next week are Markit Manufacturing PMI at Nov 23, CB Consumer Confidence Index at Nov 24, GDP quarterly report, Core Durable Goods Orders monthly report, Initial Jobless Claims, and FOMC Minutes at Nov 25 for US.  

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 3.39% lower than the previous week. Maintaining high at 1899.0 and low at 1852.6 showed a movement of 464 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 1897.6 may open a clean path towards 1921.4 and may take a way up to 1943.9. Should 1851.2 prove to be unreliable support, the XAUUSD may sink downwards 1828.8 and 1804.9 respectively. In H4 chart Symmetrical Triangle breakout favors prospects of a bullish trend. Also to be noted hammer formation exerts the expectation of uptrend for the pair.