The gold price on Friday pulled back off the session highs of about $2,527 to trade at about $2,500 after the latest US data. The XAU/USD trades within a sideways channel formation in the 60-minute chart.
The gold price has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the price of the yellow metal is on the verge of entering 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 July US personal consumption expenditures price index missed the expectation of 2.6% with a change of 2.5% (YoY). The (MoM) equivalent was in line with the forecast of 0.2%.
The core personal consumption expenditures – price index for the period also missed the estimated (YoY) change of 2.7% with a change of 2.6%. The (MoM) equivalent matched the estimate of 0.2%. Personal income for July exceeded expectations of 0.2% with a change of 0.3% (MoM), while personal spending was in line with the estimate of 0.5%.
Elsewhere, the Michigan Consumer Sentiment Index for August fell short of the forecasted reading of 68 with 67.9, while the Chicago Purchasing Managers’ Index beat the estimate of 45.5 with a reading of 46.1. The UoM 5-year consumer inflation expectations for August were in line with the forecast of 3%, unchanged from the preceding period.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the XAU/USD trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions of the indicator.
Therefore, the bears will be targeting downward profits at about $2,473 or lower at $2,447. On the other hand, the bulls will look to pounce on profits at about $2,527 or higher at $2,551.
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-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards $2,432 or lower to $2,366. On the other hand, the bulls will look to pounce on rebounds at about $2,569 or higher at $2,633.