On Friday, the gold price pulled back from the session highs of about $3,363 to trade at about $3,291 after the latest U.S. data. The XAU/USD trades within an unstable sideways channel formation in the 60-minute chart.
Gold has now plummeted to trade slightly below the 100-hour moving average line. As a result, the price of the yellow metal is closer to 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 U.S. market. On Friday, the Michigan Consumer Sentiment Index for April exceeded the forecast of 50.8 with a reading of 52.2. The Michigan Consumer Expectations Index for the period also outshone the estimate of 47.2 with a reading of 47.3.
The UoM 5-year consumer inflation expectation for April was in line with the forecast of 4.4%, unchanged from March, while the UoM 1-year consumer inflation expectation for the period fell to 6.5%, down from 6.7%, missing the forecast of 6.7%.
Earlier in the week, the U.S. durable goods orders for March beat the expected change of 2% with a change of 9.2%. The durable goods orders ex-defence also outshone the estimate of 0.2% with a change of 10.4%, while the durable goods orders ex-transportation fell short of 0.2% with a change of 0%.
The nondefense capital goods orders ex-aircraft for the month failed to match the expectation of 0.2% with a change of 0.1%, while the existing home sales change for the period missed -3% with a change of -5.9% (MoM). Elsewhere, the initial jobless claims for the week ending April 18 came in higher than expected with 222k versus a forecast of 221k, up from the previous week’s claim count of 216k.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI has recently pulled back to move closer to oversold conditions, indicating a slight bearish bias.
Therefore, the bears will look to stretch the current pullback towards $3,217 or lower to $3,147. On the other hand, the bulls will look to pounce on rebounds at about $3,363 or higher at $3,432.
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-day RSI has recently pulled back to recover from oversold conditions.
Therefore, the bears will be targeting extended pullbacks at about $3,122 or lower at $2,964. On the other hand, the bulls will look to pounce on profits at about $3,451 or higher at $3,601.