On Friday, the gold price bounced from the session lows of about $4,311 to trade at about $4,372 after the latest US data. The XAU/USD trades within a sideways channel formation on the 60-minute chart.
The price of the yellow metal continues to trade slightly below the 100-hour moving average line, despite the rebound. As a result, it still has some room left to run before reaching the overbought 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 preliminary Michigan Consumer Sentiment Index for August missed the expectation of 54.5, with a reading of 51, down from the previous month’s equivalent of 55.2.
The US retail sales for July also missed the expected (MoM) change of 0.1%, with a change of -0.6%, while the retail sales ex-autos fell short of 0.2%, with a change of -0.3% (MoM).
On Thursday, the US producer price index for July fell short of the forecasted (MoM) and (YoY) changes of 0.2% and 4.9%, respectively, with changes of 0% and 4.7%. On the other hand, the producer price index ex-food and energy missed the forecasted (MoM) change of 0.3%, with a change of 0.2%, while the (YoY) equivalent was in line with the estimate of 4.2%.
Elsewhere, the US initial jobless claims for last week came in worse than expected, with 209k versus a forecast of 202k, up from the preceding week’s claim count of 200k.
Earlier in the week, the US consumer price index for July matched both the (MoM) and (YoY) forecasts of 0.1% and 3.4%, respectively.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within a sideways channel formation on 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 $4,447 or higher to $4,521. On the other hand, the bears will look to pounce on pullbacks at about $4,311, or lower at $4,234.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal has recently completed an upward breakout from a descending channel formation. However, the 14-day RSI pulled back on Friday to avoid rallying into overbought conditions.
Therefore, the bears will look to stretch the current pullback towards $4,180 or lower to $3,959. On the other hand, the bulls will look to pounce on extended rebounds at about $4,567, or higher at $4,777.