The gold price on Friday pulled back off the current 4-week highs of about $1,795 to trade at about $1,766. The price of the yellow metal now appears to have found a strong support zone around $1,770, which sparked a later rebound on Friday.
The gold price also seems to be trading in a XABCD advancing double-bottom pattern formation in the 60-min chart. The 100-hour moving average support pushed the XAU/USD to prevent it from descending to the oversold conditions of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the price of the yellow metal appears to suffer on Friday following the latest round of US economic data. The US Department of Statistics reported 528k new jobs for July, more than doubling the forecasted figure of 250k. In addition, the unemployment rate fell to 3.5% down from 3.6% reported for June, also ahead of the average estimate of 3.6%. On the other hand, the average hourly wage growth rose by 5.2% compared to an expectation of 4.9% from the same month a year ago, while the (MoM) equivalent of 0.5% was higher than the estimated growth rate of 0.3%.
Earlier in the week, the initial jobless claims for the week ending July 29 slightly missed the forecast of 259k with a claim count of 260k, while the continuing claims for the preceding week were miles off the target of 1.37 million with 1.416 million. Elsewhere, the ISM Services PMI for July beat the expectation of 53.5 with 56.7.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the XAU/USD seems to be forming the second bottom of a XABCD double-bottom reversal pattern in an ascending trend. This indicates that the bulls are trying to maintain short-term control of the price of gold.
Therefore, they will be looking to extend the current rally by targeting rebounds at about $1,785, or higher at $1,794. On the other hand, the bears will look to pounce on profits at about $1,766, or lower at $1,756.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of gold seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about $1,724, or lower at $1,678. On the other hand, the bulls will look to pounce on profits at about $1,822, or higher at $1,870.