The gold price on Friday pulled back off the session highs of about $2,338 to trade at about $2,325 after the latest US data. The XAU/USD continues to trade within a sideways channel formation in the 60-minute chart.
Gold has now pulled back to trade closer to the 100-hour moving average line. Friday’s pullback prevented the price of the yellow metal from ascending into the overbought levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the XAU/USD is trading at the back of a relatively busy period in the US market. On Friday, the Chicago Purchasing Managers Index for June exceeded the forecasted reading of 40 with a reading of 47.4. The Michigan Consumer Sentiment Index for the period also beat the estimate of 65.8 with a reading of 68.2.
On the other hand, US personal income for May exceeded the (MoM) forecast of 0.4% with a change of 0.5%, while personal spending missed the estimate of 0.3% with a change of 0.2%.
The US personal consumption expenditures – price index for the month was in line with the estimates of 0% (MoM) and 2.6% (YoY), while the core personal consumption expenditures – price index for the period also matched the expected (MoM) and (YoY) changes of 0.1% and 2.6%, respectively.
Earlier in the week, the US personal consumption expenditure prices for Q1 beat the forecasted (QoQ) change of 3.3% with a change of 3.4%, while the core personal consumption expenditure prices for the period outshone 3.6% with a change of 3.7% (QoQ).
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price appears to be trading within a sideways channel formation in the 60-minute chart. The 14-hour RSI has pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about $2,309 or lower at $2,295. On the other hand, the bulls will look to pounce on rebounds at about $2,338 or higher at $2,353.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the XAU/USD is trading within a descending channel formation. However, the 14-hour RSI still seems to have room left to run before reaching oversold conditions.
Therefore, the bears will be targeting extended declines at about $2,257 or lower at $2,194. On the other hand, the bulls will be targeting potential rebound profits at about $2,386 or higher at $2,445.