Gold Price Bounces Off Session Lows To Trade At About $4,053

On Friday, the gold price bounced from the session lows of about $4,021 to trade at about $4,053 after the latest US data. The XAU/USD trades within a descending channel formation on the 60-minute chart.

The price of the yellow metal continues to trade slightly below the 100-hour moving average line, despite the latest rebound. However, Friday’s rebound prevented it from entering the oversold levels of the 14-hour RSI.

Gold Price Fundamentals Overview

From a fundamental perspective, the XAU/USD trades during a relatively busy period in the US market. On Friday, the Chicago Purchasing Managers’ Index for July rose to 57.6, up from 6.7 in June, beating the forecast of 56. The Michigan Consumer Expectations Index for the month also exceeded the forecast of 54, with a reading of 55.4, up from 54, while the Michigan Consumer Sentiment Index exceeded the expectation of 54, with a reading of 55.2, up from 54.4. 

Elsewhere, the UoM 1-year and 5-year consumer inflation expectations for the month matched the forecasts of 4.2% and 3.3%, respectively, unchanged from June. The employment cost index for Q2 outperformed the expected 0.8% change, with a 0.9% change.

Earlier in the week, the US initial jobless claims for last week came in better than expected, at 197k versus a forecast of 200k, up from the previous week’s equivalent of 188k. On the other hand, personal income for June missed the forecasted (MoM) change of 0.3%, with a change of 0.2%, while personal spending was in line with the estimate of 0.3%.

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to avoid falling into oversold conditions. 

Therefore, the bulls will look to stretch the latest rebound towards $4,086 or higher to $4,120. On the other hand, the bears will look to pounce on profits at about $4,021 or lower at $3,983.

Gold Price Technical Analysis (the Daily Chart)

In the daily chart, the price of the yellow metal trades within a descending channel formation. However, the 14-day RSI has recently bounced back to recover from oversold conditions. 

Therefore, the bulls will look to ride the current rebound towards $4,163 or higher to $4,276. On the other hand, the bears will look to pounce on profits at about $3,943, or lower at $3,824.