The gold price on Friday extended its mid-week gains to a new week high of about $1,760 after Thursday’s rebound. The price of the yellow metal continues to trade within a gently descending channel formation in the 60-min chart.

Friday’s extended gains pushed the gold price above the 100-hour moving average. The XAU/USD has also surged closer to the overbought levels of the 14-hour RSI. Therefore, the yellow metal could experience a short-term pullback.

Gold Price Fundamentals Overview

From a fundamental perspective, the XAU/USD is trading at the back of a relatively busy period in the US market. On Friday, the Michigan Consumer Sentiment Index for September beat the expectation of 71 with 72.8. Moreover, Personal Spending grew by 0.8%, outperforming the expectation of 0.6% while personal income rose 0.2%, missing the estimate of 0.3%.

The latest US manufacturing data impressed after the ISM Manufacturing PMI beat the expectation of 59.6 with 61.1, after rising from the previous month’s reading of 59.9. The Manufacturing Price Paid of 81.2 was significantly better than the expectation of 78.5 while the New orders index reading of 66.7 narrowly beat the forecast fo 66. On the other hand, the ISM Manufacturing Employment Index narrowly missed 50.9with 50.2.

Earlier in the week, the annualised US GDP for Q2 beat expectations, while the initial and continuing claims disappointed. 

Gold Price Technical Analysis (the 60-min Chart)

Technically, the XAU/USD appears to be trading within a descending channel formation in the 60-min chart. However, the price of the yellow metal appears to have recently spiked after a significant change in the market sentiment.

Therefore, the bulls will be looking to stretch the current rally towards $1,782 or higher to $1,804. On the other hand, the bears will be targeting short-term profits at about $1,742 or lower at $1,721.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the gold price continues to trade within a gently descending channel formation despite recently bouncing off the oversold conditions. Moreover, the XAU/USD firmly remind below the 100-day moving average.

Therefore, the bears will be looking to retain control of the gold price by targeting profits at around $1,680 or lower at $1,594. On the other hand, the bills will target long-term profits at around $1,853 or higher at $1,933.