On Friday, the gold price bounced back from the session lows of about $4,343 to trade at about $4,384 after the latest US data. XAU/USD trades within an ascending channel formation on the 60-minute chart.

The price of the yellow metal continues to trade a few levels above the 100-hour moving average line after the rebound. However, it recently pulled back to avoid rallying into the overbought levels of the 14-hour RSI.

Gold Price Fundamentals Overview

From a fundamental perspective, XAU/USD trades during a relatively busy period in the US market. On Friday, the US industrial production for August missed the expected (MoM) change of 0.3%, with a change of 0%. On Thursday, the Philadelphia Fed Manufacturing Survey for September outperformed the expected reading of 30.5, with a reading of 37.8, down from 47.4 in August. 

On the other hand, pending home sales for August fell short of the forecast (MoM) change of 2%, with a change of 0.3%. Elsewhere, the initial jobless claims for last week fell to 196k, down from the previous week’s 206k, beating the forecast claim count of 208k. 

Earlier in the week, US retail sales for August outperformed the expected (MoM) change of 0.8%, with a change of 1.2%. The retail sales ex-autos for the period also outshone the expected (MoM) change of 0.5%, with a change of 1.4%. 

Elsewhere, the Federal Reserve raised the base interest rate by 25 basis points to 4%, up from 3.75% as expected. Building permits for August missed the (MoM) expectation of 1.41 million with 1.394 million, down from the previous month’s 1.433 million. Housing starts for the period also fell to 1.275 million, down from 1.309 million, missing the forecast of 1.31 million (MoM).

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to extend the latest pullback towards $4,343 or lower, down to $4,303. On the other hand, the bulls will look to pounce on profits at about $4,424 or higher, up to $4,465. 

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 after pulling back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards $4,225 or lower, down to $4,065. On the other hand, the bulls will look to pounce on rebounds at about $4,532 or higher, up to $4,687.