Fundamental view:
The yellow metal moved up and down against greenback in the previous week. The US dollar’s market valuation, rather than risk sentiment, remained the primary driver of XAU/USD’s movements throughout the week. Powell’s dovish tone and the FOMC’s commitment to continue to support the economic recovery triggered a USD selloff late on Wednesday and helped XAU/USD gain traction. However, the benchmark 10-year US Treasury bond yield extended its rally on Thursday and added strength to the USD.
“Gold as an asset class has moved up on the investors’ lists. The precious metal was irrelevant for many a few weeks ago; there was more action in other markets. But now, it moved itself back up. Gold is a player on the field again after being benched for a while,” said a Strategist.
The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Mar 22, Fed Chair Powell Testimony at Mar 23, Core Durable Goods Orders monthly report at Mar 24, GDP quarterly report, Initial Jobless Claims at Mar 25, PCE Price Index at Mar 26 for US.
XAU/USD Weekly outlook: