On Friday, the gold price extended Thursday’s pullback from highs of about $4,570 to trade at about $4,508 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 has now pulled back to trade slightly below the 100-hour moving average line. However, it still has room left to run before reaching the oversold 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 Expectations Index for May missed the forecasted reading of 48.5, with a reading of 44.1, down from the previous month’s equivalent of 48.5. On the other hand, the Michigan Consumer Sentiment Index for the period fell to 44.8, down from 48.2, missing the forecasted reading of 48.2. 

Elsewhere, the UoM 1-year consumer inflation expectation for the month beat the expected rate of 4.5%, coming in at 4.8%, up from 4.5% in April. The UoM 5-year consumer inflation expectation also rose to 3.9%, up from the previous month’s equivalent of 3.4%, beating the forecasted rate of 3.4%.

Earlier in the week, the US initial jobless claims for last week fell to 209k, down from the previous week’s equivalent of 212k, beating the forecasted claim count of 210k. On the other hand, the Philadelphia Fed Manufacturing Survey for May fell to -0.4, down from 26.7 in April, missing the forecasted reading of 18. 

Elsewhere, building permits for April outperformed the expectation of 1.39 million, with a tally of 1.442 million, while the housing starts for the period beat 1.41 million, with a tally of 1.465 million.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the current pullback towards $4,449 or lower to $4,381. On the other hand, the bulls will look to pounce on profits at about $4,570 or higher at $4,634.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the yellow metal is oscillating within a consolidative triangle pattern. The 14-day RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to extend the current declines toward $4,298 or lower to $4,082. On the other hand, the bulls will look to pounce on profits at about $4,695 or higher at $4,899.