Fundamental view:

Gold fell in the last week as optimism among investors developed for the greenback as it started gaining strength. Improved productivity thanks to telework turns to be a bad news for gold

Looking ahead, it remains to be seen if Chairman Jerome Powell and Co. will reveal anything new at the Kansas City Fed’s Economic Symposium in Jackson Hole, Wyoming scheduled for August 27-28 as “members agreed that the Federal Reserve was committed to using its full range of tools to support the U.S. economy in this challenging time.” In turn, the Fed symposium may indicate more of the same for the September meeting, and current market conditions may keep the price of gold afloat as the crowding behavior in the Greenback looks poised to persist over the remainder of the month.          

The major economic events deciding the movement of the pair in the next week are CB Consumer Confidence at Aug 25, US Core Durable Goods Orders monthly report, Crude Oil Inventories at Aug 26, US Prelim GDP quarterly report, Fed Chair Powell Speaks at Aug 27 for US, Jackson Hole Symposium at Aug 27 & 28.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.66% lower than the previous week. Maintaining high at 2015.6 and low at 1911.4 showed a movement of 1042 pips.

In the upcoming week we expect XAU/USD to show a bearish trend.  The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 1895.9 may open a clean path towards 1851.5 and may take a way down to 1791.7. Should 2000.1 prove to be unreliable resistance, the XAUUSD may raise upwards 2059.9 and 2104.3 respectively. In H4 chart Descending Triangle breakout favors prospects of a bearish trend. Also to be noted Spinning top formation exerts the expectation of downtrend for the pair.