Fundamental view:

Gold showed a bearish trend last week. Gold has failed to capitalize due to falling US Treasury bond yields. Because of the absence of high-tier macroeconomic data releases, the benchmark 10-year US T-bond yield, lost more than 4% on the uninspiring May jobs report on Friday. University of Michigan said on Friday that the Consumer Sentiment Index improved modestly to 86.4 in June’s preliminary reading from 82.9 in May. This print came in slightly better than the market expectation. Amidst all the catalysts Gold showed a bearish trend.              

The major economic events deciding the movement of the pair in the next week are Retail Sales monthly report, Fed Industrial Production yearly report at Jun 15, EIA Crude Oil Stocks Change, Fed Interest Rate Decision at Jun 16, Philadelphia Fed Manufacturing Index, Initial Jobless Claims at Jun 17 and Baker Hughes US Total Rig Count at Jun 18 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.67% lower than the previous week. Maintaining high at 1903.6 and low at 1869.6 showed a movement of 340 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 1896.5 may open a clean path towards 1917.1 and may take a way up to 1930.5. Should 1862.5 prove to be unreliable support, the XAUUSD may sink downwards 1849.1 and 1828.5 respectively. In H4 chart bullish bat pattern formation favors prospects of a bullish trend. Also to be noted three outside down formation exerts the expectation of uptrend for the pair.