Gold Pulls Back Off 7-Week Highs of $1,785 to Trim Weekly Gains

Free $100 Forex No-Deposit Bonus

The price of gold on Friday pulled back from the current 7-week highs of about $1,785 to trade at around $1,776 following the latest round of US data. The price of the yellow metal continues to oscillate within a gently ascending channel formation in the 60-min chart.

It remains several levels above the 100-hour and the 200-hour SMA lines. Friday’s pullback also pushed the gold price back to the normal trading zone of the 14-hour RSI from overbought levels.

Gold Price Fundamentals Overview

From a fundamental perspective, the yellow metal is trading at the back of a relatively busy period in the market. On Friday, the preliminary Michigan consumer sentiment index for April missed the expectation of 89.6 with 86.5. On the other hand, the US building permits for March outperformed the expectation of 1.75 million with 1.766 million (MoM). Housing starts for the period also beat the (MoM) expectation of 1.613 million with 1.739 million.

Earlier in the week, the US retail sales control group for March outshone the expected change of 6.3% with a change of 6.9%. General retail sales beat the expected (MoM) change of 5.9% with a change of 9.8%. The Philadelphia Fed Manufacturing Survey for April outperformed 42 with 50.2 while retail sales ex-autos for March beat the expected (MoM) growth of 5% with a growth of 8.4%. Earlier, the US consumer price index ex-food and energy for March outperformed expectations on both the (MoM) and (YoY) basis.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the price of the yellow metal appears to be trading within a gently ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

The bulls will be looking to ride the current bull-run by targeting profits at around $1,787 or higher at $1,800. On the other hand, the bears will look to pounce for potential pullbacks at around $1,759 or lower at $1,746.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of gold appears to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment. The recent rebound has pushed gold closer to overbought levels of the 14-day RSI.

The bulls will target long-term profit at around 38.20% and 23.60% fib levels at $1,838 and $1,927, respectively. On the other hand, the bears will look to pounce at around 61.80% and 76.40% fib levels at $1,696 and $1,609, respectively.

Copyright © 2021. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.