The gold price on Friday bounced off the current five-month lows of about $1,785 to trade above $1,809 after the US ISM PMIs. The price of the yellow metal appears to be trading within a sharply ascending channel formation in the 60-min chart.
However, the gold price still continues to trade below the 100-hour moving average line despite the sharp spike. In addition, the XAU/USD seems to have room left to run before reaching the overbought conditions of the 14-hour RSI.
The Gold Price Fundamentals Overview
The gold price received a major boost on Friday after the latest round of the US ISM Manufacturing data failed to match expectations. The ISM Manufacturing PMI for June came in at 53, significantly below the market estimate of 54.9. Its associated PMIs, including Manufacturing Prices Paid, New Orders Index and the Employment Index also came short of expectations. Elsewhere, the S&P Global Manufacturing PMI outperformed the expectation of 52.4 with 52.7.
Earlier in the week, the core personal consumption expenditures price index for May missed the expected (MoM) change of 0.4% with 0.3%. On the other hand, personal spending for the month came in at 0.3% compared to the estimated change of 0.5%. The initial and continuing jobless claims for last week, and the week before, respectively missed 228k and 1.31 million with, 231k and 1.328 million.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal seems to be trading within a sharply ascending channel formation in the 60-min chart. This indicates an abrupt change in the market sentiment from bearish to bullish.
Therefore, the bulls will look to extend the current rebound profits towards $1,814 or higher to $1,820. On the other hand, the bears will target potential pullbacks at about $1,804, or lower at $1,799.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of gold seems to be trading within a descending triangle formation. This signals a potential ending of the current bearish trend.
Therefore, the bulls will be targeting potential long-term rebounds at about $1,831, or higher at $1,857. On the other hand, the bears will look to extend the declines toward $1,785 or lower to $1,756.