Fundamental view:

Gold rallied last week. . U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resumed their talks over the coronavirus aid plan, after U.S. President Donald Trump called off negotiations earlier this week. These catalysts favored the yellow metal.

Another thing that could have affected the gold market was Chinese markets opening again. Their indices played catch up and opened higher with the Shanghai Composite closing 1.68% higher. “The gyrations on whether we are going to get a stimulus or not seems to be affecting gold prices; gold has rallied on huge stimulus from the U.S. Federal Reserve and the government, and if that continues, it will support gold further,” said an Analyst. Gold has gained 26% this year, boosted by massive stimulus globally to cushion the pandemic’s economic impact.

The major economic events deciding the movement of the pair in the next week are Federal Budget Balance, Core PPI monthly report at Oct 13, Initial Jobless Claims, EIA Crude Oil Stocks Change at Oct 15, and Retail Sales monthly report at Oct 16 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.66% higher than the previous week. Maintaining high at 1929.7 and low at 1872.8 showed a movement of 569 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 1947.6 may open a clean path towards 1967.0 and may take a way up to 2004.4. Should 1890.7 prove to be unreliable support, the XAUUSD may sink downwards 1853.4 and 1833.9 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bullish trend. Also to be noted spinning top formation exerts the expectation of uptrend for the pair.