Fundamental view:

Gold price is on its way to the highest levels seen this year after recovering more than $220 since the bottom at the end of March. During the last week, Federal Reserve Governor Lael Brainard repeated that the Fed has the tools to guide inflation back down if it were to move persistently above the Fed’s target. The US Bureau of Economic Analysis (BEA) announced on Thursday that it left the annualized Real Gross Domestic Product (GDP) growth for the first quarter unchanged at 6.4% in its second estimate. Other datas revealed that the weekly Initial Jobless Claims fell to the lowest level in more than a year at 406,000. 

Core Personal Consumption Expenditures (PCE) Price Index jumped to 3.1% on a yearly basis in April from 1.9% in March. The US Dollar Index climbed to its strongest level in more than ten days at 90.44. Despite of positive data for US, yellow metal traded high.

The major economic events deciding the movement of the pair in the next week are ISM Manufacturing PMI at Jun 01, Fed Beige Book Jun 02, ADP Nonfarm Employment Change, EIA Crude Oil Stocks Change Jun 03, Fed Chair Powell Speech and Nonfarm Payrolls at Jun 04 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 1.20% higher than the previous week. Maintaining high at 1912.7 and low at 1872.7 showed a movement of 400 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 1919.6 may open a clean path towards 1936.2 and may take a way up to 1959.6. Should 1879.6 prove to be unreliable support, the XAUUSD may sink downwards 1856.2 and 1839.6 respectively. In H4 chart bullish flag pattern favors prospects of a bullish trend. Also to be noted hammer formation exerts the expectation of uptrend for the pair.