Fundamental view:

In the past week, Federal Budget deficit printed new record amount and Fed officials were increasingly doubtful about the sustainability of the economic recovery which decreased the dollar value whereas Gold moved upwards due to future inflation thus XAU/USD showed a bullish trend in the past week.

Central banks around the world continue to loosen monetary policy and that of course is good for gold, as it continues to see a lot of buyers looking to get a bit of safety into their portfolio and According to many analysts, the one factor that will continue to drive gold prices higher in the near term is weakness in the U.S. dollar. We expect an uptrend for XAU/USD in the next week.

The major economic events deciding the movement of the pair in the next week are Existing Home Sales, Crude Oil Inventories at Jul 22, Unemployment Claims, CB Leading Index monthly report at Jul 23, Flash Manufacturing PMI at Jul 24 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.16% lower than the previous week. Maintaining high at 1814.9 and low at 1790.3 showed a movement of 246 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 downside. A solid breakout above 1820.3 may open a clean path towards 1829.9 and may take a way up to 1845. Should 1795.7 prove to be unreliable support, the XAUUSD may drop to 1780.7 and 1771.1 respectively. In H4 chart the formation of spinning top favors our expectation of bullish trend also if the breakout of rectangular channel happens to the upside then bullish trend can be finalized.