Gold Price Bounces Off Session Lows To Trade At About $4,055

On Friday, the gold price bounced from the session lows of about $4,019 to trade at about $4,055 after the latest US data. The XAU/USD trades within an ascending 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 rebound. As a result, it still has some room left to run before reaching the overbought 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 preliminary S&P Global Manufacturing PMI for July missed the expectation of 54.5, with a reading of 53.8, down from the previous month’s equivalent of 53.9. 

On the other hand, the preliminary S&P Global Services PMI for the month beat the forecasted reading of 51, with a reading of 53.6, up from 51.2 in June, while the preliminary S&P Global Services PMI for the period improved to 53.6, up from 51.9. Elsewhere, new home sales for June exceeded the (MoM) expectation of 0.61 million, with 0.628 million, up from the previous month’s equivalent of 0.618 million.

On Thursday, the US initial jobless claims for last week came in better than expected, at 187k versus a forecast of 212k, down from the previous week’s claim count of 209k. The continuing claims for the preceding four weeks also fell to 1.796 million, down from 1.798 million. 

Gold Price Technical Analysis (the 60-min Chart)

Technically, the gold price trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards $4,019 or lower to $3,981. On the other hand, the bulls will look to pounce on profits at about $4,089 or higher at $4,124.

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 avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards $4,219 or higher to $4,383. On the other hand, the bears will look to pounce on profits at about $3,886 or lower at $3,710.