Fundamental view:

In the last week, Increased tensions between US and China, Historic EU deal supported gold. Fed’s open door to doing more implies further dollar weakness. Number of new Covid-19 cases weakens dollar and Gold saw the benefit from that. U.S. data showed the deepest economic contraction leading to a bullish move.

We expect the short-term trend to be shaky because traders are going to be a little more cautious as prices straddle the $2000 level hence we expect a bearish move for the instrument in the upcoming week.

The major economic events deciding the movement of the pair in the next week are ISM Manufacturing PMI at Aug 03, ISM Non-Manufacturing PMI, Crude Oil Inventories at Aug 05, Unemployment Claims at Aug 06, Average Hourly Earnings monthly report, and Unemployment Rate at Aug 07 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 4.06% higher than the previous week. Maintaining high at 1983.9 and low at 1905.3 showed a movement of 786 pips.

In the upcoming week we expect XAU/USD to show a bearish trend.  The Instrument is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1923.2 may open a clean path towards 1874.9 and may take a way down to 1844.6. Should 2001.9 prove to be unreliable resistance, the XAUUSD may raise upwards 2032.2 and 2080.5 respectively. In H4 chart breakout of a Triple top pattern formation favors prospects of a bearish trend. Also to be noted Spinning top formation exerts the expectation of downtrend for the pair.