On Friday, the gold price pulled back from the session highs of about $2,935 to trade at about $2,882 after the US data. The XAU/USD also completed a downward breakout from an ascending channel formation.
The price of the yellow metal has now fallen to trade below the 100-hour moving average line. As a result, the gold price ended the session in the oversold levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, gold trades during a relatively busy period in the U.S. market. On Friday, the U.S. industrial production for January exceeded the (MoM) forecast of 0.3% with a change of 0.5%. On the other hand, the retail sales for last month missed the expected change of -0.1% with a change of -0.9% (MoM), while the retail sales ex-autos fell short of 0.3% with a change of -0.4%.
On Thursday, the U.S. initial jobless claims for the week ending January 7 came in lower than expected with 213k versus a forecast of 215k, down from the preceding week’s equivalent of 220k. The U.S. producer price index for January came in better than expected with 0.4% versus a forecasted (MoM) change of 0.3%. The (YoY) equivalent also beat the estimate of 3.2% with a rate of 3.5%.
On the other hand, the producer price index ex-food and energy outshone the forecasted (YoY) change of 3.3% with a change of 3.6%, while the (MoM) equivalent was in line with the estimate of 0.3%.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal has completed a downward breakout from an ascending channel formation. The 14-hour RSI also supports a bearish bias after plummeting into the oversold conditions.
Therefore, the bears will look to extend the current decline towards $2,856 or lower to $2,828. On the other hand, the bulls will look to pounce on rebounds at about $2,908 or higher at $2,935.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the XAU/USD trades within a sharply ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying deeper into the overbought conditions.
Therefore, the bears will target extended pullbacks at about $2,816 or lower at $2,759. On the other hand, the bulls will look to pounce on profits at about $2,940 or higher at $2,998.