Fundamental view:

The vaccines are coming – we’re saved! Although the arriving vaccines are great for humanity, they are bad for the price of gold. In November, Pfizer and BioNTech announced that their mRNA-based vaccine candidate, BNT162b2, had demonstrated evidence of an efficacy rate above 90% against COVID-19, in the first interim efficacy analysis.

At the start of the week, the data from China showed that the country’s exports in November surged by 21.1% on a yearly basis. With this reading surpassing the market expectation for an increase of 12% by a wide margin, risk flows remained in control of financial markets. 

The major economic events deciding the movement of the pair in the next week are Retail Sales monthly report, EIA Crude Oil Stocks Change, Fed Interest Rate Decision at Dec 16, Building Permits, and Initial Jobless Claims at Dec 17 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.47% higher than the previous week. Maintaining high at 1875.2 and low at 1821.7 showed a movement of 535 pips.

In the upcoming week we expect XAU/USD to show a bearish trend.  The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1815.6 may open a clean path towards 1791.9 and may take a way down to 1762.1. Should 1869.1 prove to be unreliable resistance, the AUDUSD may raise upwards 1898.9 and 1922.7 respectively. In H4 chart inverted cup and handle pattern favors prospects of a bearish trend. Also to be noted hanging man candle formation exerts the expectation of downtrend for the pair.