Fundamental view:

The yellow metal had been rocking on the scope for more greenbacks, fiscal stimulus talks seemed to be making progress, but after Congress adjourned, the final nail hit the coffin of talks. The breakdown in talks weighed on the precious metal. Democrats and Republicans were hovering around a $2 trillion deal that could have helped gold prices. While that may still happen, it all depends on the elections.

FiveThirtyEight’s model has been showing Democrat Joe Biden as having an 89% chance of beating President Donald Trump, but at least for now, markets have the memory of 2016 in their minds and are cautious. Uncertainty weighed on markets, and gold was carried lower.              

The major economic events deciding the movement of the pair in the next week are ISM Manufacturing PMI at Nov 02, ADP Nonfarm Employment Change, ISM Non-Manufacturing PMI, EIA Crude Oil Stocks Change at Nov 04, Fed Interest Rate Decision at Nov 05, and Nonfarm Payrolls at Nov 06 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.04% lower than the previous week. Maintaining high at 1911.4 and low at 1859.8 showed a movement of 516 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1907.06 may open a clean path towards 1935.2 and may take a way up to 1959.1. Should 1856.1 prove to be unreliable support, the XAUUSD may sink downwards 1832.2 and 1804.5 respectively. In H4 chart rounding bottom formation favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.