On Friday, the gold price pulled back from the session highs of about $4,799 to trade at about $4,754 after the latest US data. The XAU/USD trades within a sideways channel formation in the 60-minute chart.
The price of the yellow metal continues to trade slightly above the 100-hour moving average line, despite the pullback. As a result, gold 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 US market. On Friday, the US consumer price index for March matched the (MoM) and (YoY) forecasts of 0.9% and 3.3%, respectively, up from 0.3% and 2.4%.
On the other hand, the consumer price index ex-food and energy for the period fell short of the forecasted (MoM) change of 0.3%, with a change of 0.2%, unchanged from the previous period. The (YoY) equivalent also missed 2.7%, with a change of 2.6%, up from 2.5%.
Factory orders for February came in better than expected, with 0% change versus a forecast of -0.2%. On the other hand, the preliminary Michigan Consumer Sentiment Index for April fell short of the forecasted reading of 52, with a reading of 47.6, down from the previous month’s equivalent of 53.3.
Earlier in the week, the US initial jobless claims for last week increased to 219k, up from the preceding week’s claim count of 203k, missing the forecast of 210k. The annualized US gross domestic product for Q4 also fell short of 0.7%, with a change of 0.5%, while the gross domestic product price index for the quarter missed 3.8%, with a change of 3.7%.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move towards oversold conditions.
Therefore, the bears will look to extend the latest pullback towards $4,699 or lower to $4,650. On the other hand, the bulls will look to pounce on profits at about $4,799 or higher at $4,844.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of gold trades within an ascending channel formation. However, the 14-day RSI still has plenty of room left to run before reaching overbought conditions.
Therefore, the bulls will look to ride the current run of gains toward $5,080 or higher to $5,384. On the other hand, the bears will look to pounce on pullbacks at about $4,418 or lower at $4,101.