The gold price on Friday pulled back to trade below the $1,800 level after funding strong trendline resistance. The price of the yellow metal appears to be trading within an ascending channel formation in the 60-min chart.
The currency pair continues to trade below the 100-hour moving average line following Friday’s late pullback. As a result, it remains central in the 14-hour RSI leaving room for more downward movement.
Gold Price Fundamentals Overview
From a fundamental perspective, gold is trading at the back of a relatively busy period in the US market. On Friday, US durable goods orders for November missed the expected change of -0.6% with a change of -2.1%. On the other hand, durable goods orders ex-transportation beat the estimate of 0% with a change of 0.2%, while durable goods orders ex-defence missed the forecast of 0.1% with a change of -2.6%. Elsewhere, personal income outshone the expected (MoM) change of 0.2% with a change of 0.4%, while personal spending came short of 0.2% with a change of 0.1%.
Earlier in the week, the US gross domestic product for Q3 outperformed the expectation of 2.9% with an annualised change of 3.2%. The (QoQ) equivalent beat the estimate of 4.6% with a change of 4.7%, while the gross domestic product price index beat the forecast of 4.3% with a change of 4.4%. Elsewhere, the initial jobless claims for last week outshone the expected claim count of 222k with a tally of 216k.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the XAU/USD appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be targeting extended gains at about $1,802 or higher at $1,808. On the other hand, the bears will be targeting potential pullback profits at about $1,792 or lower at $1,786.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the XAU/USD seems to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to stretch the current streak of gains toward $1,818 or higher to $1,840. On the other hand, the bears will look to pounce on profits at about $1,776 or lower at $1,754.