The gold price on Friday pulled back off the session highs of about $2,358 to trade at about $2,327 after the latest round of data. The XAU/USD appears to have completed a downward breakout from an ascending channel formation in the 60-minute chart.
Gold has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the price of the yellow metal has descended closer to the oversold levels 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 U.S. market. On Friday, the US personal consumption expenditures – price index for April matched the (MoM) and (YoY) expectations of 0.3% and 2.7%, respectively. The core personal consumption expenditures – price index for the period missed the (MoM) expectation of 0.3% with a change of 0.2%, while the (YoY) equivalent was in line with the estimate of 2.8%.
Elsewhere, personal spending fell short of the forecasted change of 0.3% with a change of 0.2% while personal income matched the (MoM) forecast of 0.3%. The Chicago Purchasing Managers’ Index for May missed the expected reading of 41 with a reading of 35.4.
Earlier in the week, the US initial jobless claims for the week ending May 24 missed the expected claim count of 218k with a slightly higher tally of 219k. The continuing claims for the preceding week outshone the forecast of 1.8 million with a tally of 1.791 million. Elsewhere, pending home sales for April failed to match the expectation of -0.6% with a change of -7.7% (MoM).
Gold Price Technical Analysis – the 60-min Chart
Technically, the yellow metal appears to have completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI also seems to support a bearish bias as it moves closer to oversold conditions.
Therefore, the bears will be targeting extended pullbacks at about $2,312 or lower at $2,294. On the other hand, the bulls will be targeting profits at about $2,340 or higher at $2,358.
Gold Price Technical Analysis – the Daily Chart
In the daily chart, the XAU/USD appears to be about to complete a double-top reversal pattern formation. The 4-day RSI has also pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about $2,275 or lower at $2,215. On the other hand, the bulls will be targeting long-term profits at about $2,374 or higher at $2,432.