On Friday, the gold price pulled back from the session highs of about $3,998 to trade at about $3,965 after the latest US data. XAU/USD trades within a descending channel formation on the 60-minute chart.
The price of the yellow metal has now fallen to trade several levels below the 100-hour moving average line. As a result, it is on the verge of entering 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 employment cost index for Q3 matched the forecast change of 0.8%, down from 0.9%. On Thursday, US personal income for September missed the expected (MoM) change of 0.3%, with a change of 0.2%. Personal spending for the period also fell short of 0.6%, with a change of 0.5%.
On the other hand, the US personal consumption expenditures price index for September matched the (MoM) and (YoY) forecasts of 0.5% and 3.6%, respectively. The core personal consumption expenditures price index for the period was also in line with the estimates of 0.3% (MoM) and 3.1% (YoY). Elsewhere, the initial jobless claims for last week came in lower than expected, at 194k versus a forecast of 199k, down from the previous week’s claim count of 195k.
The preliminary annualized US gross domestic product for Q3 outperformed the expected change of 3.2%, with a change of 3.4%. On the other hand, the preliminary gross domestic product price index for the quarter fell short of the forecasted change of 3.5%, with a change of 2.2%. Earlier in the week, the Federal Reserve voted to keep the base interest rate unchanged at 4%, in line with expectations.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within a descending channel formation on the 60-minute chart. The 14-hour RSI also supports a bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to stretch the current pullback towards $3,932 or lower, down to $3,895. On the other hand, the bulls will look to pounce on rebounds at about $3,998 or higher, up to $4,034.
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 also supports a long-term bearish bias as it edges closer to oversold conditions.
Therefore, the bears will look to stretch the current run of declines toward $3,825 or lower, down to $3,681. On the other hand, the bulls will look to pounce on rebounds at about $4,090 or higher, up to $4,228.