On Friday, the gold price pulled back from the session highs of about $4,036 to trade at about $4,000 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 plummeted to trade several levels below the 100-hour moving average line. However, it still has some room left to run before re-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 Michigan Consumer Sentiment Index for October came in stronger than expected, at 56 versus a forecast of 55.6, up from the previous month’s equivalent of 55.9. The Michigan Consumer Expectations Index for the period also improved to 48.8, up from 47.3 in September.

On the other hand, the UoM 1-year and 5-year consumer inflation expectations for the month matched forecasts of 4.7% and 3.5%, respectively. 

Elsewhere, the preliminary S&P Global Manufacturing PMI for October outshone the forecast reading of 55.6, with a reading of 56, up from the previous month’s equivalent of 55.9. The preliminary Michigan Consumer Expectations Index fell to 47.9, down from 48.8, in line with expectations.

Earlier in the week, the US building permits for September fell slightly to 1.4 million, down from 1.403 million, beating the forecast of 1.39 million. Housing starts for the period fell to 1.221 million, down from 1.288 million, missing the forecast of 1.3 million. On the other hand, existing home sales for September missed the forecast (MoM) change of -0.5%, with a change of -7.3%.

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 has also recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to extend the current pullback towards $3,960 or lower, down to $3,921. On the other hand, the bulls will look to pounce on rebounds at about $4,036 or higher, up to $4,073.

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 extend the current pullback towards $3,868 or lower, down to $3,741. On the other hand, the bulls will look to pounce on rebounds at about $4,141 or higher, up to $4,271.