Fundamental view:

Gold markets have gone back and forth during the course of the week. With the benchmark 10-year US Treasury bond yield continuing to edge lower, however, gold advanced to its highest level. In the absence of high-tier macroeconomic data releases, XAU/USD continued to react to fluctuations in the US T-bond yields.  US President Joe Biden was planning to propose an increase in capital gains tax to pay for a major spending plan for families that will be announced next week.

In the upcoming week, Market participants will pay close attention to the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, on Friday. Earlier in the month, the Consumer Price Index (CPI) data eased fears over price pressures becoming uncontrollable in the near term and caused US Treasury bond yields to push lower.              

The major economic events deciding the movement of the pair in the next week are Core Durable Goods Orders monthly report at April 26, CB Consumer Confidence Index at April 27, EIA Crude Oil Stocks Change, Fed Interest Rate Decision at April 28, GDP quarterly report, Initial Jobless Claims at April 29, and Employment Cost Index at April 30 for US. 

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.79% higher than the previous week. Maintaining high at 1797.9 and low at 1763.6 showed a movement of 343 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1795.3 may open a clean path towards 1813.8 and may take a way up to 1829.6. Should 1761.0 prove to be unreliable support, the XAUUSD may sink downwards 1745.2 and 1726.7 respectively. In H4 chart ABCD pattern formation favors prospects of a bullish trend. Also to be noted Bullish harami formation exerts the expectation of uptrend for the pair.