On Friday, the gold price pulled back from the session highs of about $3,920 to trade at about $3,889 after the latest US data. XAU/USD trades within a descending channel formation on the 60-minute chart. 

The yellow metal continues to trade at several levels below the 100-hour moving average line after the pullback. However, it bounced back slightly to avoid falling back into the oversold levels of the 14-hour RSI.

Gold Price Fundamentals Overview

From a fundamental perspective, XAU/USD trades during a relatively busy period in the US market. On Friday, the US producer price index for October fell to 0.3% (MoM), down from 1.4% in September, and below the forecast rate of 0.4%. The (YoY) equivalent rose slightly to 6.5%, up from 6.3%, but fell below the expectation of 6.6%. 

On the other hand, the producer price index ex-food and energy for the month fell to 0.3%, down from 0.8% (MoM), in line with expectations. The (YoY) equivalent remained steady at 5%, as expected. 

On Thursday, the US initial jobless claims for last week came in higher than expected, at 200k versus a forecast of 195k, up from the previous week’s equivalent of 191k. On the other hand, the monthly budget statement for October fell to $-404.1 billion, down from $27 billion in September, missing the forecast of $-298.6 billion. The existing home sales change for October fell to -5.5%, down from 1% in September.

Earlier in the week, the US consumer price index for October fell to 0.4% (MoM), down from 0.6% in September, above the forecast rate of 0.3%. The consumer price index ex-food and energy for the period remained steady at 0.3% (MoM), above the forecast rate of 0.2%.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid re-entering oversold conditions.

Therefore, the bulls will look to extend the current rebound towards $3,920 or higher, up to $3,951. On the other hand, the bears will look to pounce on profits at about $3,855 or lower, down to $3,822.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the yellow metal also trades within a descending channel formation. The 14-day RSI has also recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards $3,766 or lower, down to $3,628. On the other hand, the bulls will look to pounce on rebounds at about $4,021 or higher, up to $4,144.