The gold price on Friday pulled back off the current weekly highs of about $1,676 to trade at about $1,660, trimming gains. The price of the yellow metal continues to trade within an ascending channel formation in the 60-min chart.
The gold price has now advanced to trade a few levels above the 100-hour moving average line. However, Friday’s pullback prevented the XAU/USD from advancing deep into the overbought levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the XAU/USD is trading a the back of a relatively busy period in the US market. On Friday, the core personal consumption expenditures price index for Sep outshone the (MoM) forecast of 0.5% with a change of 0.6%. The (YoY) equivalent also beat 4.7% with a change of 4.9%. On the other hand, the general personal consumption expenditures price index for the period missed the forecasted (YoY) change of 6.6% with a lower growth rate of 6.2%, while the (MoM) equivalent matched the forecast of 0.3%.
Earlier in the week, the US gross domestic product price index for Q2 outperformed the expectation of 8.9% with a change of 9.1%. On the other hand, the annualised gross domestic product for the period matched the expected change of 0.6%. Elsewhere, the initial jobless claims for the week ending Sep 23 outperformed the expected claim count of 215k with a lower tally of 193k.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current rally toward $1,676 or higher to $1,687. On the other hand, the bears will be targeting potential pullbacks at about $1,650 or lower at $1,638.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal seems to be oscillating within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about $1,621 or lower at $1,574. On the other hand, the bulls will look to pounce on rebounds at about $1,702 or higher at $1,751.