The gold price on Tuesday pulled back to trade below the $1,780 level following the latest round of US data. The yellow metal still appears to be trading within an ascending trend formation in the 60-min chart. It has now pulled back below the mean of the regression trend.
The Pearson’s coefficient correlation of about 0.85 suggests that the price of gold could bounce back towards the mean section in the coming days. It is now pinned to the 100-hour SMA while the 200-hour SMA is a few levels below. It bounced back late on Tuesday to avoid falling to oversold levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the XAU/USD is trading ahead of a relatively busy period in the US market. On Wednesday, traders will be looking forward to the US ISM Services PMIs and the ADP Employment data for April. This could have a significant impact on the price of the yellow metal. It will also be coming at the back of Monday’s weak ISM Manufacturing PMI, which missed expectations of 65 with 60.7.
The ISM Manufacturing New Orders Indes and Employment Index also came short of expectations while Manufacturing Prices paid outshone estimates. On the other hand, the Markit Manufacturing PMI narrowly missed the expectation of 60.6 with 60.5. On Thursday, the initial and continuing jobless claims could also have an impact on the price of the yellow metal while Friday’s non-farm payroll data is highly anticipated to shake things up.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price appears to be trading within an ascending trend formation in the 60-min chart. The regression trend appears to have a strong Pearson’s correlation coefficient of 0.85. This suggests that the current pattern sequence could continue through Friday.
The bulls will be targeting short-term rebound profits at around $1,797 or higher at $1,813. On the other hand, the bears will look to pounce on pullbacks at around $1,762 or lower at $1,745.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of gold appears to be trading within a descending channel formation. It has recently bounced back to surge towards the trendline support next to the 100-day SMA. It also looks closer to overbought levels of the 14-day RSI.
The bulls will be looking to ride the current upward movement towards 38.20% and 23.60% fib levels at $1,840 and $1,927, respectively. On the other hand, the bears will target profits at around 61.80% and 76.40% fib levels at $1,696 and $1,608, respectively.