Fundamental view:

The Yellow metal has fell against greenback in this week. A strong rebound in the US Treasury bond has supported the US dollar. Apart from this, a generally positive tone around the equity markets further acted as a headwind for traditional safe-haven assets.

US Powell’s gave his comments during his second day of testimony before the House of Representatives Financial Services Committee on Thursday, where he repeated his pledge of “powerful support” for the U.S. economic recovery from COVID-19. But Some predicted an interest rate hike as early as 2022 but acknowledged that recent COVID-19 outbreaks involving the Delta variant remain the biggest economic risk.

In the upcoming week, the yellow metal is expected to be bullish  The bullish outlook on gold comes after Federal Reserve Chair Jerome Powell testified before Congress and said that while inflation can continue to move higher in the next few months, they continue to see the rise as transitory.              

The major economic events deciding the movement of the pair in the next week are Building Permits at July 20, EIA Crude Oil Stocks Change at July 21, Initial Jobless Claims, CB Leading Economic Index monthly report at July 22 and Markit Manufacturing PMI at July 23 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.85% higher than the previous week. Maintaining high at 1833.8 and low at 1791.5 showed a movement of 423 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 1833.0 may open a clean path towards 1854.5 and may take a way up to 1875.3. Should 1790.7 prove to be unreliable support, the XAUUSD may sink downwards 1769.9 and 1748.4 respectively. In H4 chart bullish butterfly pattern favors prospects of a bullish trend. Also to be noted hammer formation exerts the expectation of uptrend for the pair.