Gold Price Pulls Back Off New Multi-Year Highs After US Data

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The gold price on Thursday pulled back of session highs of about $1,750 to trade at $1,726 following the latest round of US data. This week, the price of the yellow metal climbed to a new multi-year high of about $1,764 before pulling back to bottom at $1,720 on Thursday.

The gold price continues to trade within a gently rising wedge in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. The price of gold is now pegged just above the 200-hour SMA and a few pips below the 100-hour SMA.

Gold Price Fundamentals Overview

Gold continues to experience a positive sentiment in the general market view. This is partly because the world is not out of the woods yet amid the coronavirus pandemic. A global economic slowdown continues to make investments in gold more compelling to investors. 

Based on the latest US economic data, there is nothing to pull down the price of the yellow metal in the long-term. Thursday posted some positive manufacturing data, which triggered the pullback. The preliminary Markit Manufacturing and Services PMIs for May beat expectations of 38 and 30, respectively with 39.8 and 36.9. Existing Home Sales for April also impressed after outperforming expectations.

However, the initial jobless claims came short of the expectation of 2.4M with 2.438M claims. The continuing claims also disappointed with 25.073M claims versus and expectation of 24.765M. The Philadelphia Fed Manufacturing Survey for May also came short of -41.5 with -43.1.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price appears to be trading within an ascending channel in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. Gold is enjoying the support of the 200-hour SMA while the 100-hour SMA provides a strong resistance.

The bulls will be targeting short-term profits at around $1,746 or higher at $1,764. On the other hand, the bears will look to pounce on short-term pullback profits at around $1,702 or lower at $1,681.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the gold price appears to be trading within a sharply rising wedge. This indicates a strong long-term bullish bias in the market sentiment. 

The bulls will be targeting long-term profits at around $1,765 or higher at $1,821. On the other hand, the bears will target pullback at around $1,671 or lower at $1,608.

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