Fundamental view:

Gold has rallied against greenback in this week. US bond yields have plunged in the past week, which supported gold prices. The reason of gold support could be by pointing to fears of the Delta covid variant that would knock down the recovery, at least temporarily. Other reason may be short-lived pause in the issuance of new bonds.  Whereas less return on safe US debt makes the precious metal more attractive, yet the correlation between both asset classes – as well as that with the dollar – has eroded. When yields finally advanced late in the week, XAU/USD received a small boost.              

The major economic events deciding the movement of the pair in the next week are WASDE Report at July 12, Federal Budget Balance at July 13, EIA Crude Oil Stocks Change, Fed Chair Powell Testimony at July 14, Philadelphia Fed Manufacturing Index, Initial Jobless Claims at July 15 and Retail sales monthly report at July 16 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.30% higher than the previous week. Maintaining high at 1818.3 and low at 1784.4 showed a movement of 339 pips.

In the upcoming week we expect XAU/USD to show a bullish trend. The Instrument is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1822.6 may open a clean path towards 1837.4 and may take a way up to 1856.6. Should 1788.7 prove to be unreliable support, the XAUUSD may sink downwards 1769.5 and 1754.7 respectively. In H4 chart Ascending Triangle breakout favors prospects of a bullish trend. Also to be noted Bullish harami formation exerts the expectation of uptrend for the pair.