Fundamental view:

Gold has been consolidating heavily over the last month and this week’s Fed meeting did not inspire a breakout in either direction. “Barring short-term corrections, negative real yields and a weaker dollar, alongside the unprecedented stimulus, create a favourable macro environment for gold and are likely to be the key price drivers over the coming months.” The instrument has showed a mixed trend in the last week.          

The major economic events deciding the movement of the pair in the next week are Existing Home Sales, Fed Chair Powell Testimony at Sep 22, Markit Manufacturing PMI, EIA Crude Oil Stocks Change at Sep 23, New Home Sales at Sep 24, and Core Durable Goods Orders monthly report at Sep 25 for US. 

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.36% higher than the previous week. Maintaining high at 1973.5 and low at 1932.8 showed a movement of 407 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 1972.3 may open a clean path towards 1993.2 and may take a way up to 2013.0. Should 1931.6 prove to be unreliable support, the XAUUSD may sink downwards 1911.9 and 1890.9 respectively. In H4 chart bullish bat pattern favors prospects of a bullish trend. Also to be noted bullish shooting star formation exerts the expectation of uptrend for the pair.