The price of gold (XAU/USD) on Friday appears to find support around the 100-hour SMA at $1,798 after Wednesday and Thursday pullback. The price of the yellow metal had rallied earlier on in the week to trade at around $1,820, a new multi-year high before finding strong trendline resistance.
The pullback during the last two days has pushed the gold price closer to oversold levels of the 14-hour RSI in the 60-min chart. The 100-hour SMA and the 200-hour SMA lines continue to provide strong support in the short-term.
Gold Price Fundamentals Overview
From a fundamental perspective, the gold price is trading at the back of a relatively busy period in the US market. This comes after a series of key economic data came out earlier in the week and during the last to days. On Monday, the Markit Services PMI for June beat the expectation of 46.7 with 47.9. The PMI composite also outperformed 46.8 with 47.9. The ISM non-manufacturing PMI beat 50.1 with 57.1 while the New orders index beat 44 with 61.6. On the other hand, the ISM non-manufacturing employment index outshone 30.7 with 43.1 while prices paid beat 53.9 with 62.4.
On Thursday, the initial jobless claims for the week ending July 3 beat the expectation of 1.375M with 1.314M claims while the continuing claims for the preceding week outperformed 18.95M claims with 18.062M. On Friday, the US Producer Price Index for June missed expectations on all counts (YoY) and (MoM) with -0.8% and -0.2%, respectively versus -0.2% and 0.4%. The PPI ex-food and energy also came short of 0.4% (YoY) with 0.1%.
God Price Technical Analysis (the 60-min Chart)
Technically, the price of gold appears to be trading within an ascending channel in the 60-min chart. This indicates a short-term bullish bias in the market sentiment.
The bulls will be looking to extend short-term gains towards $1,810 or higher to $1,820. On the other hand, the bears will look to pounce on short-term pullback profits at around $1,786 or lower at $1,776.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the gold price appears to be trading within a steeper channel. This indicates a stronger long-term bullish bias in the market sentiment. The price of the yellow metal is nearly crossing to overbought levels of the 14-day RSI.
The bulls will look to extend the long-term bullish momentum by targeting profits at around $1,848 or higher at $1,900. On the other hand, the bears will target profits at around $1,745 or lower at $1,691.