On Friday, the gold price bounced back from the session lows of about $4,512 to trade at about $4,583 after the latest US data. The XAU/USD trades within an ascending channel formation on the 60-minute chart.
The price of the yellow metal has now advanced to trade several levels above the 100-hour moving average line. However, it pulled back slightly to recover from the overbought levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the XAU/USD trades during a relatively busy period in the US market. On Friday, the preliminary S&P Global Manufacturing PMI for August missed the expectation of 53.9, with a reading of 53.2. On the other hand, the preliminary S&P Global Services PMI for the month outshone the forecast of 54, with a reading of 56.8.
On Thursday, the Philadelphia Fed Manufacturing Survey for August also came in better than expected, at 47.4 versus a forecast of 25, up from 41.4 in July. The initial jobless claims for last week fell to 206k, down from the preceding week’s equivalent of 212k, beating the forecasted claim count of 210k.
Earlier in the week, the US building permits for July outperformed the expectation of 1.37 million, with a tally of 1.433 million, up from the previous month’s equivalent of 1.374 million. On the other hand, the housing starts for the month fell short of the forecasted tally of 1.35 million, with a tally of 1.239 million, down from 1.415 million in June.
Elsewhere, industrial production for July missed the expected (MoM) change of 0.3%, with a change of 0.2%, while the pending home sales for the period fell short of 0.3%, with a change of -2.3% (MoM).
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to extend the current pullback towards $4,512 or lower to $4,443. On the other hand, the bulls will look to pounce on profits at about $4,657, or higher at $4,726.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal also trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.
Therefore, the bulls will look to ride the current run of gains toward $4,772 or higher to $4,949. On the other hand, the bears will look to pounce on pullbacks at about $4,401, or lower at $4,208.