On Tuesday, the gold price bounced from the session lows of about $4,433 to retest the current all-time highs of about $4,499. The XAU/USD trades within an ascending channel formation in the 60-minute chart.
The price of the yellow metal has now advanced to trade several levels above the 100-hour moving average line. Tuesday’s pullback helped the gold price 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 U.S. market. On Tuesday, the US durable goods orders for October missed the expected change of -1.5%, with a change of -2.2%. The durable goods orders ex-transportation also fell short of 0.3%, with a change of 0.2%.
On the other hand, the industrial production for October failed to match the forecast of 0.1%, with a change of -0.1%. The industrial production for November beat the estimate of 0.1%, with a change of 0.2%. The capacity utilization for October edged lower to 75.9%, down from 76% in September, in line with estimates. In November, it rose back to 76%, beating the forecast of 75.9%.
Elsewhere, the preliminary annualized US gross domestic product for Q3 came in better than expected, with 4.3% versus a forecast of 3.3%. The preliminary US gross domestic product price index for the quarter also exceeded the expectation of 2.7%, with a change of 3.7%.
The preliminary personal consumption expenditures price index for the period was in line with the estimate of 2.8%. The preliminary core personal consumption expenditures matched the forecast of 2.9%.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards $4,433 or lower to $4,377. On the other hand, the bulls will look to pounce on profits at about $4,530 or higher at $4,583.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal trades within an ascending channel formation. The 14-day RSI also supports a strong long-term bullish bias after entering overbought conditions.
Therefore, the bulls will look to extend the current rally towards $4,693 or higher to $4,925. On the other hand, the bears will look to pounce on pullbacks at about $4,273 or lower at $4,010.