The gold price on Friday pulled back off the current weekly highs of about $1,735 to trade at around $1,727. The price of the yellow metal still seems to be oscillating within an ascending channel formation in the 60-min chart.
The gold price also remains pinned several levels above the 100-hour moving average line after Thursday’s crossover. Friday’s pullback prevented gold from ascending deep into the overbought conditions of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, the yellow metal is trading at the back of a relatively busy period in the global markets. The covid-10 pandemic is still a major concern amid the latest Micron sub-variants. On the other hand, central banks around the world continue to hike interest rates despite the prevalent recession fears. The latest to surprise the market was the European Central Bank following Thursday’s 50 basis point hike. The XAU/USD is also affected by the US economic data, with the latest update sending mixed reactions to the market.
Nevertheless, gold seems to have benefitted from Thursday’sPhiladelphia Fed manufacturing survey, which missed expectations of 0 with -12.3. The initial and continuing jobless claims also came short of expectations. On Friday, the preliminary S&P Global Manufacturing PMI outperformed the expectation of 52 with 52.3. However, the Services PMI and PMI composite failed to match expectations.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of the yellow metal 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 gains toward $1,733 or higher to $1,739. On the other hand, the bears will look to pounce on short-term profits at about $1,720, or lower at $1,713.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of gold seems to be trading within a sharply descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines toward $1,705 or lower to $1,680. On the other hand, the bulls will be targeting long-term rebounds at about $1,746, or higher at $1,769.