Fundamental view:

Gold markets initially tried to rally during the initial of the week but later fell to form a bearish candle. Gold is pressured in part by some upbeat U.S. economic data. Gold prices hit a nine-month low this week. Rising government bond yields this week and a higher U.S. dollar index are also market drivers which support the greenback.

The upbeat data provided an additional boost to the already stronger US dollar and prompted some selling around the dollar-denominated commodity. The USD was further supported by a fresh leg up in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.

XAU/USD remains on track to record the third consecutive week of losses and vulnerable to slide further. Hence, any attempted recovery might still be seen as a selling opportunity amid the progress on US President Joe Biden’s $1.9 trillion stimulus package.              

The major economic events deciding the movement of the pair in the next week are WASDE Report at Mar 09, CPI monthly report, EIA Crude Oil Stocks Change at Mar 10, JOLTS Job Openings, Initial Jobless Claims at Mar 11, and Michigan Consumer Sentiment at Mar 12 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 3.10% lower than the previous week. Maintaining high at 1759.8 and low at 1687.2 showed a movement of 726 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 1744.3 may open a clean path towards 1788.4 and may take a way up to 1816.9. Should 1671.7 prove to be unreliable support, the XAUUSD may sink downwards 1643.1 and 1599.0 respectively. In H4 chart deep crab pattern favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.