Fundamental view:

Last week gold was crushed, with it having one of its worst weeks since Coronavirus hit last year. And it is worth recalling that the Fed took a sudden hawkish turn on Wednesday and brought forward its projections for the first post-pandemic interest rate hikes to 2023. The Fed also indicated that it will soon work on tapering down the current $120 billion in monthly bond purchases. This was seen as another factor pressuring on the non-yielding gold.              

The major economic events deciding the movement of the pair in the next week are FOMC Member Williams Speech at Jun 21, Fed Chair Powell Testimony at Jun 22, Markit Manufacturing PMI, EIA Crude Oil Stocks Change at Jun 23, GDP quarterly report, Core Durable Goods Orders, Initial Jobless Claims at Jun 24 and Core PCE Price Index at Jun 25 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.37% lower than the previous week. Maintaining high at 1877.5 and low at 1760.8 showed a movement of 1167 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 1724.4 may open a clean path towards 1684.2 and may take a way down to 1607.7. Should 1841.1 prove to be unreliable resistance, the XAUUSD may raise upwards 1917.6 and 1957.8 respectively. In H4 chart descending triangle pattern breakout favors prospects of a bearish trend. Also to be noted bearish harami formation exerts the expectation of downtrend for the pair.