On Friday, the gold price pulled back off the current multi-year highs of about $2,685 to trade at about $2,653 after the latest US data. The XAU/USD also completed a downward breakout from an ascending channel formation in the 60-minute chart.
Friday’s pullback pushed the price of the yellow metal slightly below the 100-hour moving average line. As a result, the gold price is on the verge of entering the oversold levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the XAU/USD trades during a relatively busy period in the U.S. market. On Friday, the Michigan consumer sentiment index for September beat the expected reading of 69.3 with a reading of 70.1, up from the preceding month’s equivalent of 69. The UoM 5-year consumer inflation expectation for the period was unchanged at 3.1%, in line with estimates.
On the other hand, personal spending for August missed the expected change of 0.3% with a change of 0.2%, down from 0.3% in July, while personal income fell short of 0.4% with a change of 0.2%, also down from 0.3% in the preceding month.
Elsewhere, the personal consumption expenditures – price index for August missed the expected (YoY) change of 2.3% with a change of 2.2%. The (MoM) equivalent was in line with the forecast of 0.1%. On the other hand, the core personal consumption expenditures – price index for the period fell short of the forecasted (MoM) change of 0.2% with a change of 0.1%, while the (YoY) equivalent matched the forecast of 2.7%.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal has completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI has fallen closer to the overbought levels of the indicator.
Therefore, the bears will be targeting extended declines at about $2,630 or lower at $2,607. On the other hand, the bulls will look to pounce on rebounds at about $2,676 or higher at $2,697.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the XAU/USD trades within an ascending channel formation. The 14-day RSI also seem to support a long-term bullish bias after entering the overbought conditions of the indicator.
Therefore, the bulls will be targeting long-term profits at about $2,748 or higher at $2,837. On the other hand, the bears will look to pounce on pullbacks at about $2,559 or lower at $2,465.