Fundamental view:

A stronger-than-expected U.S. retail sales report lifted appetite for riskier assets, but factory production unexpectedly fell in September and Republicans seemed unlikely to agree on a U.S. stimulus deal before Election Day even as coronavirus cases continue to rise and a labour market recovery stalls. which has risen about 25% so far this year, is considered a hedge against inflation and currency debasement amid the unprecedented global levels of stimulus.

In the upcoming week, The precious metal continues to look to developments from the US political arena, particularly headlines around a potential stimulus package to fight the second wave of the coronavirus pandemic, which is already hurting the prospects of global recovery.         

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Oct 19, Building Permits at Oct 20, EIA Crude Oil Stocks Change at Oct 21, Existing Home Sales at Oct 22, and Markit Manufacturing PMI at Oct 23 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.18% higher than the previous week. Maintaining high at 1933.2 and low at 1882.4 showed a movement of 508 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 1930.3 may open a clean path towards 1957.1 and may take a way up to 1981.1. Should 1879.6 prove to be unreliable support, the XAUUSD may sink downwards 1855.6 and 1828.8 respectively. In H4 chart Bullish Gartley pattern formation favors prospects of a bullish trend. Also to be noted Bullish Spinning top formation exerts the expectation of uptrend for the pair.