Fundamental view:

The yellow metal has made a entry in the week under slightly selling pressure but struggled to gather bearish momentum in the absence of significant fundamental drivers. The renewed USD strength in the second half of the week forced the pair to, once again, turn south.

Whereas Clarida said that he expects the conditions for raising interest rates to be met by the end of 2022. Along with that, Dallas Fed President Robert Kaplan argued that the Fed should start tapering asset purchases soon and do it in a gradual way.              

The major economic events deciding the movement of the pair in the next week are JOLTS Job Openings at Aug 09, Nonfarm Productivity at Aug 10, EIA Crude Oil Stocks Change, Federal Budget Balance at Aug 11, Initial Jobless Claims, WASDE Report at Aug 12 and Michigan Consumer Sentiment at Aug 13 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.06% lower than the previous week. Maintaining high at 1831.6 and low at 1758.6 showed a movement of 730 pips.

In the upcoming week we expect XAU/USD to show a bearish trend. The Instrument is trading below the below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1737.3 may open a clean path towards 1711.5 and may take a way down to 1664.3. Should 1810.2 prove to be unreliable resistance, the XAUUSD may raise upwards 1857.4 and 1883.2 respectively. In H4 chart double top pattern favors prospects of a bullish trend. Also to be noted shooting star formation exerts the expectation of downtrend for the pair.