On Friday, the gold price bounced back from the session lows of about $4,293 to trade at about $4,402 before pulling back to $4,362. The XAU/USD trades within a descending channel formation on the 60-minute chart.
The price of the yellow metal continues to trade slightly below the 100-hour moving average line after the late pullback. As a result, it still has some left to run before reaching 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 Michigan Consumer Sentiment Index for September fell to 47.8, down from 51.7 in August, missing the forecast of 51. The consumer price index for August matched the (MoM) and (YoY) expectations of 0.4% and 3.4%, respectively.
On the other hand, the consumer price index ex-food and energy for the month outperformed the forecast (MoM) change of 0.2%, with a change of 0.3%. The (YoY) equivalent was in line with the estimate of 2.4%.
On Thursday, the US initial jobless claims for last week came in worse than expected, at 206k versus a forecast of 205k, slightly below the preceding week’s claim count of 207k. The producer price index for August matched the forecast (MoM) change of 0.4%, while the (YoY) equivalent was slightly stronger than expected, at 5.4% versus a forecast of 5.3%.
On the other hand, the producer price index ex-food and energy for the period fell short of the forecast (MoM) change of 0.3%, with a change of 0.2%, while the (YoY) equivalent was in line with the estimate of 4.6%.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to extend the latest rebound towards $4,433 or higher, up to $4,498. Meanwhile, bears will look to take profits at about $4,293 or lower, down to $4,225.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards $4,176 or lower, down to $4,005. On the other hand, the bulls will look to pounce on rebounds at about $4,535 or higher, up to $4,705.