Gold Bulls Pinned Below $1,970 After Pulling Back Off New Historical Highs

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The gold price on Friday pulled back to trade at around $1,967 off historical highs of about $1,984 after running out of steam in the last few trading sessions. The price of the yellow metal continues to trade within an ascending channel in the 60-min chart. 

It remains perched above the 100-hour SMA line while the 200-hour SMA is more levels below. The latest pullback in the price of gold has pushed it back to the normal trading zone of the 14-hour RSI.

Gold Price Fundamentals Overview

From a fundamental perspective, the price of gold is trading at a time of uncertainty. The global financial markets continue to be under pressure from the adverse economic effects of COVID-19. There are signs that a second wave of the coronavirus pandemic could have already started in various markets. The US is not an exception and this is hurting the economy. Based on the latest US economic data, the economy is sending mixed signals with some positive data accompanied by near misses.

Earlier this week, US durable goods orders for June beat the expectation of 7.2% with 7.3% while nondefense capital goods orders ex-aircraft outperformed 2.3% with 3.3%. On the other hand, durable goods orders ex-transportation missed the expectation of 3.5% with 3.3% while durable goods orders ex-defense came short of 18.6% with 9.2%. On Thursday, the US GDP for Q2 missed the expectation of 1.1% with -2.1%. On the other hand, the initial jobless claims for last week beat the expectation of 1.45M with 1.434M while continuing claims missed 16.2M with 17.018M.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price appears to be trading within a sharply rising channel in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment. The price of the yellow metal has recently pulled back after running out of steam.

The bulls will be looking to extend the current gains towards a new all-time high of about $1,985 or higher to $2,000. On the other hand, the bears will look to capitalize on short-term pullbacks at $1,951 and $1,932.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the XAU/USD appears to have recently spiked to break out of an ascending channel. This indicates an abrupt acceleration of the bullish momentum in the market sentiment. It is now in overbought levels of the 14-day RSI.

The bulls will be looking to extend the current rally towards $2,034 or higher to $2,100. On the other hand, the bears will look to capitalize on long-term pullbacks around $1,904 and $1,821.

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