On Friday, the gold price pulled back from the session highs of about $3,348 to trade at about $3,337 after the latest U.S. data. The XAU/USD trades within a descending channel formation in the 60-minute chart.
The price of the yellow metal also continues to oscillate slightly below the 100-hour moving average line. However, it still has room left to run before reaching 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 preliminary Michigan Consumer Sentiment Index for August came in worse than expected, with 58.6 versus a forecast of 62. The Preliminary Michigan Consumer Expectations Index beat the forecast of 56.4 with a reading of 57.2, while the industrial production for July fell short of 0% with a change of -0.1% (MoM).
On the other hand, the U.S. retail sales for July matched the (MoM) forecast of 0.5%. The retail sales ex-autos were also in line with the estimate of 0.3%. Elsewhere, the NY Empire State Manufacturing Index for August outshone the forecast of 0 with a reading of 11.9.
Earlier in the week, the initial jobless claims for the week ending August 8 came in lower than expected, with 224k versus a forecast of 228k, down from the previous week’s equivalent of 227k. The producer price index for July also exceeded the expectation of 0.2% with a change of 0.9% (MoM), while the (YoY) equivalent beat 2.5% with a change of 3.3%. The producer price index ex-food and energy also outshone the expectations of 0.2% (MoM) and 2.9% (YoY), with 0.9% and 3.7%, respectively.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching oversold conditions.
Therefore, the bears will look to stretch the current declines toward $3,323 or lower to $3,310. On the other hand, the bulls will look to pounce on rebounds at about $3,348 or higher at $3,360.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal trades in a sideways channel formation. The 14-day RSI has recently pulled back to move towards oversold conditions.
Therefore, the bears will look to extend the recent pullback towards $3,272 or lower to $3,209. On the other hand, the bulls will look to pounce on profits at about $3,402 or higher at $3,469.