On Friday, the gold price bounced from the session lows of about $4,239 to trade at about $4,348 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 a few levels above the 100-hour moving average line, despite making a late pullback. Friday’s pullback helped it recover from 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 US unemployment rate for July fell to 4.1%, down from 4.2% in June, beating the forecasted rate of 4.2%.
On the other hand, the jobs data for the month fell to -23k, down from the previous month’s equivalent of 20k, missing the forecasted net job change of 80k. The average hourly wage growth for the month also missed the expected (MoM) and (YoY) changes of 0.3% and 3.5%, respectively, with changes of 0.1% and 3.2%.
On Thursday, the preliminary US nonfarm productivity for Q2 outperformed the expected change of 0.6%, with a change of 1.4%. The preliminary Unit Labor Costs for the period missed the expectation of 2%, with a change of 1.3%.
On the other hand, the initial jobless claims for last week came in better than expected, with 199k versus a forecast of 202k, slightly higher than the previous week’s equivalent of 198k.
On Wednesday, the US ISM Services PMI for July missed the forecasted reading of 54.5, with a reading of 54.1, up from the previous month’s equivalent of 54. The S&P Global Composite PMI for June beat the estimate of 53.6, with a reading of 54.5, up from 53.6 in June.
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 recover from overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards $4,239 or lower to $4,145. On the other hand, the bulls will look to pounce on profits at about $4,431 or higher at $4,525.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal has recently completed an upward breakout from a descending channel formation. The 14-day RSI also supports a bullish bias as it edges closer to overbought conditions.
Therefore, the bulls will look to stretch the latest rebound towards $4,558 or higher to $4,814. On the other hand, the bears will look to pounce on pullbacks at about $4,115 or lower at $3,871.
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