Fundamental view:

Gold has posted gains against the greenback in this week. Broad US dollar weakness stands to be the reason behind this. The comment from Fed Jerome Powell led to weak dollar. Federal Reserve Chair Jerome Powell: the U.S. economy has not reached “substantial further progress” to warrant a slow down of its bond purchasing program. Powell also acknowledged the Delta variant, which presents an increasing risk to the economic growth in the second half of the year.

Disappointing macroeconomic data on Thursday releases from the US made it difficult for the USD to erase its losses and helped XAU/USD preserve its bullish momentum. Core Personal Consumption Expenditures (PCE) Price Index released last Friday reached higher to 3.5% on a yearly basis in June. This print came in lower than the market expectation of 3.7% which also pressured dollar.              

The major economic events deciding the movement of the pair in the next week are ISM Manufacturing PMI at Aug 02, ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI, EIA Crude Oil Stocks Change at Aug 04, Initial Jobless Claims at Aug 05 and Nonfarm Payrolls at Aug 06 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.42% higher than the previous week. Maintaining high at 1832.6 and low at 1792.4 showed a movement of 402 pips.

In the upcoming week we expect XAU/USD to show a bullish trend. The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1833.8 may open a clean path towards 1853.3 and may take a way up to 1874.0. Should 1793.6 prove to be unreliable support, the XAUUSD may sink downwards 1772.9 and 1753.4 respectively. In H4 chart gartley pattern favors prospects of a bullish trend. Also to be noted hammer formation exerts the expectation of uptrend for the pair.