The gold price on Thursday extended the current 3-day gains to $1,782 before pulling back to bounce off the 100-hour moving average. The XAU/USD remains pinned within a gently descending channel formation in the 60-min chart.
The gold price is now trading a few levels above the 100-hour MA following Thursday’s rebound. The price of the yellow metal also rallied closer to the overbought 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 Friday, the department of commerce will announce the latest non-farm payrolls numbers for June. The unemployment rate for the previous month will also be out.
The market is optimistic after this week’s ADP employment change and initial jobless claims.
On Thursday, the ISM Manufacturing PMI for June missed the expected change of 61 with 60.6. The ISM Manufacturing Employment Index also missed the expectation of 53 with 49.9 while the Prices Paid and New Orders Index outperformed.
On the other hand, the US Markit Manufacturing PMI missed 62.6 with 62.1 while the initial jobless claims for last week beat 393k with 364k. Earlier in the week, the ADP Employment change outshone 600k with 692k while the Chicago Purchasing Managers’ Index for June missed 70 with 66.1.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the XAU/USD appears to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment. Gold has recently gained to move closer to oversold conditions of the 14-hour RSI.
The bulls will be looking to extend the current gains towards $1,786 or higher to $1,796. On the other hand, the bears will target profits at around $1,765 or lower at $1,754.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the gold price appears to have recently plunged to move closer to oversold conditions in the 14-dau RSI. This indicates a strong long-term bearish bias in the market sentiment. The pullback pushed XAU/USD closer to the 61.80% fib level.
The bulls will target profits at about 38.20% fib level at $1,822 or higher at $1,874. On the other hand, the bears will look to pounce at around 76.40% and 100.00% fib levels at $1,733 and $1,677, respectively.