On Friday, the gold price pulled back from the session highs of about $4,183 to trade at about $4,151 after the latest data. The XAU/USD trades within a descending channel formation in the 60-minute chart.

The price of the yellow metal has now fallen to trade several levels below the 100-hour moving average line. However, it recently bounced back to recover from 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 US market. On Thursday, the Philadelphia Fed Manufacturing Survey for June rose to 10.3, up from -0.4 in May, beating the forecasted reading of 10. On the other hand, the initial jobless claims for last week fell to 226k, down from the previous week’s equivalent of 230k, but still above the forecasted claim count of 225k. 

On Wednesday, the US retail sales for May beat the expected (MoM) change of 0.5%, with a change of 0.9%. The retail sales ex-autos for the period also exceeded the forecasted change of 0.5%, with a change of 0.8% (MoM), while the pending home sales for the month outshone the forecasted (MoM) change of 0.8%, with a change of 3.8%. The Federal Reserve chose to keep the base interest rate unchanged at 3.75% as expected.

Earlier in the week, US building permits for May missed the expectation of 1.42 million, with a tally of 1.413 million, down from the previous month’s equivalent of 1.423 million. Housing starts for the month also fell short of the forecasted tally of 1.43 million, with a tally of 1.177 million, down from 1.392 million.

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 has recently bounced back to recover from oversold conditions.

Therefore, the bulls will look to extend the latest rebound towards $4,183 or higher to $4,231. On the other hand, the bears will look to pounce on profits at about $4,113 or lower at $4,061.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the yellow metal trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to stretch the latest rebound towards $4,392 or higher to $4,602. On the other hand, the bears will look to pounce on profits at about $3,878 or lower at $3,642.