The price of gold on Thursday bounced off the 100-hour moving average to surge above $1,897 following Wednesday’s pullback. The yellow metal continues to experience a bullish bias in an ascending regressive trend.
The gold price rallied at the start of the week to top $1,912, the highest level reached since January. It continues to trade within the normal trading zone of the 14-hour RSI. This supports the continuation of the ascending trend.
Gold Price Fundamentals Overview
Gold is trading at the back of some key developments in the global markets. The XAU/USD received some boost to bounce back on Thursday after US durable goods orders for April missed 0.7% with -1.3%. On the other hand, nondefense capital goods orders ex-aircraft outshone 0.8% with a change of 2.3% while annualized gross domestic product for Q1 came short of 6.5% with 6.4%.
Initial jobless claims beat 425k with 406k while pending home sales for April missed 0.8% with -4.4% (MoM). The preliminary gross domestic product price index for Q1 beat 4.1% with 4.3% while April durable goods orders ex-transportation outperformed 0.8% with 1%. The preliminary core personal consumption expenditures beat the (QoQ) expectation of 2.3% with 2.5%.
Earlier in the week, the revised S&P/Case-Shiller Home Price Indices for April beat the expected (YoY) change of 11.7% with 13.3%. New home sales for April missed the (MoM) expectation of 0.95 million with 0.863 million.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal appears to be trading within an ascending trend formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
The bulls will look to extend the current bull-run towards $1,903 or higher to retest $1,912. On the other hand, the bears will target more pullbacks at around $1,888 or lower at $1,879.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of gold appears to have recently made a bullish breakout from a descending channel formation. This indicates a shift in the market sentiment from bearish to bullish. It has now moved to the highest level since January. It recently crossed to overbought levels of the 14-day RSI.
The bulls will target long-term profits at around $1,965 or higher at $2,033. On the other hand, the bears will look to pounce at 38.20 and 50% fib levels at $1,836 and $1,768, respectively.