Gold Stretches Weekly Gains Above $1,846 After Rebound

The gold price on Friday extended this week’s gains to trade above the $1,846 level following its rebound on Monday. The price of the yellow metal seems to be oscillating within an ascending channel formation in the 60-min chart.

The gold price has now rallied to trade several levels above the 100-hour moving average line. However, with the price yet to reach the overbought conditions of the 14-hour RSI, the current gains could continue through next week.

Gold Price Fundamentals Overview

The gold price seems to be benefiting from the latest round of US data. On Thursday, the initial jobless claims for the week ending May 13 missed the expected claim count of 200k with a higher tally of 218k, while continuing claims for the period ending May 6 outperformed 1.32 million with a lower tally of 1.317 million. On the other hand, the Philadelphia Fed Manufacturing Survey disappointed with a reading of 2.6 compared to a market forecast of 16.

The US existing home sales for April missed the expectation of 5.65 million with a lower tally of 5.61 million (MoM). The existing home sales change also came short of the expected change of -0.7% with a change of -2.4% (MoM). Earlier in the week, Housing starts for April also missed expectations, while building permits came in better than expected. The price of the yellow metal is also being affected by the fragile situation in Europe amid Russia’s invasion of Ukraine, with the western economies placing sanctions to stifle Putin’s economy.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price seems to be oscillating within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting extended gains at about $1,854, or higher at $1,864. On the other hand, the bears will look to pounce for profits at about $1,835, or lower at $1,823.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the gold price seems to have recently rebounded after completing a XABCD downward reversal pattern. This indicates an attempt by the bulls to take control of the gold price.

Therefore, they will be looking to extend the current rebounds towards $1,885 or higher to $1,934. On the other hand, the bears will be targeting long-term profits at about $1,813, or lower at $1,764.

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