On Friday, the gold price extended Thursday’s declines from the session highs of about $4,712 to trade at about $4,541. The XAU/USD trades within a descending channel formation in the 60-minute chart. 

The price of the yellow metal has now plummeted to trade several levels below the 100-hour moving average line. However, it recently bounced back to avoid falling into the oversold 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 industrial production for April came in better than expected, with a (MoM) change of 0.7% versus a forecast of 0.3%. The NY Empire State Manufacturing Index for May also exceeded the expectation of 7.5, with a reading of 19.6, up from the previous month’s equivalent of 11. 

On Thursday, the initial jobless claims for last week missed the expectation of 205k, with a tally of 211k, up from the previous week’s claim count of 199k. On the other hand, the retail sales for April matched the (MoM) forecast of 0.5, while the retail sales ex-autos also outshone the estimate of 0.6%, with a change of 0.7% (MoM). 

Earlier in the week, the US producer price index for April outshone the forecasted (MoM) change of 0.5%, with a change of 1.4%, while the (YoY) equivalent beat the expectation of 4.9%, with a change of 6%. The producer price index ex-food and energy for the month came in better than expected, with a (MoM) and (YoY) change of 1% and 5.2%, respectively, versus forecasts of 0.0.3% and 4.3%.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price trades within a descending channel formation in 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 $4,623 or higher to $4,712. On the other hand, the bears will look to ride the current run of declines toward $4,446 or lower to $4,358.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the yellow metal trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to extend the current decline towards $4,254 or lower to $3,895. On the other hand, the bulls will look to pounce on profits at about $4,856 or higher at $5,187.