On Friday, the gold price bounced back from the session lows of about $4,136 to trade at about $4,184 after the latest US data. XAU/USD trades within a sideways 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 on Friday to recover from the overbought levels of the 14-hour RSI.

Gold Price Fundamentals Overview

From a fundamental perspective, XAU/USD trades during a relatively busy period in the US market. On Thursday, the US initial jobless claims for last week came in better than expected, at 197k versus a forecast of 200k, down from the previous week’s revised claim count of 199k. On the other hand, the continuing claims for the preceding four weeks increased to 1.716 million, up from the previous update of 1.699 million, missing the forecast claim count of 1.71 million. 

Elsewhere, wholesale inventories for August outperformed the forecast change of 0.7%, with a change of 0.5%. On Wednesday, the US consumer credit change for August missed the forecast of $15 billion, with $8.28 nillion, down from the previous month’s $17.74 billion.

Earlier in the week, the US ReaClearMarkets/TIPP Eonomic Optimism for October outperformed the (MoM) forecast of 44.5, with a reading of 46.8, up from the previous month’s equivalent of 45.6. On the other hand, the US goods and services trade balance for August missed the forecast of $-102 billion, with $-105.6 billion, down from the preceding month’s equivalent of $-92.8 billion.

Gold Price Technical Analysis (the 60-min Chart) 

Technically, the gold price trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias after momentarily rallying into overbought conditions.

Therefore, the bulls will look to stretch the current gains towards $4,226 or higher, to $4,268. On the other hand, the bears will look to pounce on pullbacks at about $4,136 or lower, down to $4,090.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the yellow metal trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the current rebound towards $4,444 or higher, up to $4,709. On the other hand, the bears will look to pounce on extended pullbacks at about $3,927 or lower, down to $3,662.