Fundamental view:

The XAU/USD pair started the week on a firm footing and climbed to a weekly high of $1,855 on Wednesday supported by the broad-based selling pressure surrounding the greenback. However, with the USD regaining its strength in the second half of the week, XAU/USD came under pressure but it closed with a bullish candle at the end of the week.

In the absence of significant macroeconomic data releases and fundamental developments, the sharp decline witnessed in the US Treasury bond yields weighed on the USD and allowed XAU/USD to gain traction.              

The major economic events deciding the movement of the pair in the next week are Fed Governor Bowman Speech at Feb 16, Fed Industrial Production yearly report at Feb 17, Building Permits, Initial Jobless Claims, Philadelphia Fed Manufacturing Index at Feb 18, and FOMC Member Rosengren Speech at Feb 19 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.88% lower than the previous week. Maintaining high at 1855.4 and low at 1807.8 showed a movement of 476 pips.

In the upcoming week we expect XAU/USD to show a bearish trend.  The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1803.2 may open a clean path towards 1781.7 and may take a way down to 1755.6. Should 1850.8 prove to be unreliable resistance, the XAUUSD may raise upwards 1876.9 and 1898.4 respectively. In H4 chart Rounding top pattern formation favors prospects of a bearish trend. Also to be noted three black crows formation exerts the expectation of downtrend for the pair.