Fundamental view:

Gold started the week with a positive node but later suffered heavy losses after it broke below the lower limit of its two-week-old range at $1,720.  The upsurge in yields helped the greenback to gather strength and pushed the yellow metal down while rising global equity indexes gave a helping hand to gold by pressuring greenback.

The data published by the Institue for Supply Management (ISM) in the last week showed that the business activity in the US manufacturing sector expanded at its most robust pace since 1983 with the PMI jumping to 64.7 from 60.8 which was better than the expectation. US President Joe Biden unveiled the highly-anticipated economic plan that aims to ramp up spending by $2.25 trillion with substantial investments in infrastructure. These news made the US dollar strong against the gold in the previous week.              

The major economic events deciding the movement of the pair in the next week are IMF Meeting, ISM Non-Manufacturing PMI at April 05, JOLTS Job Openings at April 06, EIA Crude Oil Stocks Change, FOMC Minutes at April 07, Initial Jobless Claims, and Fed Chair Powell Speech at April 08 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.73% lower than the previous week. Maintaining high at 1732.9 and low at 1677.9 showed a movement of 550 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1748.5 may open a clean path towards 1768.2 and may take a way up to 1803.5. Should 1693.5 prove to be unreliable support, the XAUUSD may sink downwards 1658.5 and 1638.5 respectively. In H4 chart formation of a rounding bottom favors prospects of a bullish trend. Also to be noted three outside up pattern formation exerts the expectation of uptrend for the pair.