On Friday, the gold price bounced from the session lows of about $4,657 to trade at about $4,722 after the latest US data. The XAU/USD trades within a descending channel formation in 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 US Consumer Expectations Index for April came in stronger than expected, with 48.1 versus a forecast of 46.1, up from the previous month’s equivalent of 46.1.
On the other hand, the Michigan Consumer Sentiment Index for the period outshone the forecast of 47.6, with a reading of 49.8, up from 47.6. Elsewhere, the UoM 1-year consumer inflation expectations for the month fell short of the forecasted rate of 4.8%, with a rate of 4.7%, while the UoM 5-year consumer inflation expectation for the period outshone the estimate of 3.4%, with a rate of 3.5%.
Earlier in the week, the US initial jobless claims for last week came in worse than expected, with 214k versus a forecast of 212k, up from the preceding week’s equivalent of 208k. The preliminary S&P Global Manufacturing PMI for April beat the expected reading of 52.5, with a reading of 54, up from 52.3 in March, while the preliminary S&P Global Services PMI for the period outshone the estimate of 50, with a reading of 51.3, up from 49.8.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within a descending channel formation in the 6—minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to stretch the latest rebound towards $4,794 or higher to $4,864. On the other hand, the bears will look to pounce on profits at about $4,657 or lower at $4,583.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the latest pullback towards $4,554 or lower to $4,392. On the other hand, the bulls will look to pounce on profits at about $4,889 or higher at $5,042.