The gold price on Friday pulled back off the session highs of about $2,039 to trade at about $2,028 after the latest round of US data. The XAU/USD continues to trade within an ascending channel formation in the 60-minute chart.
The price of the yellow metal has now fallen to next to the 100-hour moving average line. Friday’s pullback prevented the gold price from advancing deep into the overbought conditions of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the XAU/USD is trading at the back of a relatively busy period in the US market. On Friday, the preliminary Michigan Consumer Sentiment Index for January outperformed the expected reading of 70 with a reading of 78.8. The preliminary UoM 5-year inflation expectations for the month fell slightly to 2.8% down from 2.9% in December. Existing home sales for December missed 3.82 million with 3.78 million while existing home sales change for the period fell by 1% compared to an increase of 0.8% in November.
On Thursday, the Philadelphia Fed Manufacturing Survey for January missed the expectation of -7 with a reading of -10.6. On the other hand, housing starts for December beat the forecasted tally of 1.426 million with 1.46 million, while building permits outshone 1.48 million with 1.495 million. Elsewhere, the initial jobless claims for the week ending January 12 beat the estimated claim count of 207k with a tally of 187k. The continuing claims for the preceding week also beat 1.845 million with 1.806 million.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal is trading within an ascending channel formation in the 60-min chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about $2,017 or lower at $2,007. On the other hand, the bulls will look to pounce on rebounds at about $2,039 or higher at $2,049.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the yellow metal appears to be trading within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid moving closer to oversold conditions.
Therefore, the bulls will be targeting extended rebounds at about $2,058 or higher at $2,090. On the other hand, the bears will be targeting long-term profits at about $1,995 or lower at $1,960.