Fundamental view:

Gold started the week on a strong footing and preserved its bullish momentum with the USD struggling to find demand throughout the week. With the early results from exit polls showing that US President Donald Trump was performing much better in the presidential race than what the polls suggested allowed USD to gather strength. However, after former Vice President Joe Biden started to narrow the gap, risk flows returned to markets and caused the greenback to come under strong selling pressure.

Later in the week, the USD selloff intensified as Biden took the lead in battleground states, namely Michigan, Georgia and Nevada. As it currently stands, Biden seems to be on his way to become the next president of the US. However, Trump is likely to fight the results in states where the margin is slim and it could take some time before an official result is announced.

The major economic events deciding the movement of the pair in the next week are JOLTS Job Openings at Nov 10, OPEC Monthly Oil Market Report, Fed Governor Quarles Speech at Nov 11, EIA Crude Oil Stocks Change, Initial Jobless Claims at Nov 12, and PPI monthly report at Nov 13 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 2.56% higher than the previous week. Maintaining high at 1960.3 and low at 1873.4 showed a movement of 869 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 1984.7 may open a clean path towards 2016.0 and may take a way up to 2071.6. Should 1897.8 prove to be unreliable support, the XAUUSD may sink downwards 1842.2 and 1810.9 respectively. In H4 chart Ascending Triangle breakout favors prospects of a bullish trend. Also to be noted spinning top formation exerts the expectation of uptrend for the pair.