The gold price on Thursday extended gains to trade closer to $1,760 following the latest round of US data. The price of the yellow metal continues to trade within an ascending channel formation in the 60-min chart.
The gold price has now ascended to trade above the 100-hour moving average line. As a result, the XAU/USD is on the verge of entering 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 US market. On Wednesday, last week’s jobless claims missed the expectation of 225k with a higher claim count of 240k. Home sales for October outperformed the forecasted tally of 0.57 million with 0.632 million, while home sales change for the period beat the expected change of -3.8% with a change of 7.5% (MoM). On the other hand, the Michigan Consumer Sentiment Index for November beat the estimated reading of 55 with a reading of 56.8.
Elsewhere, the durable goods orders for October beat the expectation of 0.4% with a change of 1%. Durable goods orders ex-defence also outshone -0.1% with 0.8%, while durable goods orders beat 0% with a change of 0.5%. On the other hand, nondefense capital goods orders ex-aircraft outshone the forecasted change of 0% with a change of 0.7%, while the S&P Global PMIs missed expectations on all verticals.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price appears 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 gains toward $1,767 or higher to $1,776. On the other hand, the bears will be targeting short-term profits at about $1,746 or lower at $1,736.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal appears to have recently completed a XABCD double-bottom pattern formation before pulling back. This indicates an attempt by the bulls to take control of the price long-term.
Therefore, they will be targeting extended gains at about $1,803 or higher at $1,869. On the other hand, the bears will be targeting long-term profits at about $1,699 or lower at $1,628.