On Friday, the gold price pulled back from the session highs of about $4,227 to trade at about $4,143 after the latest US data. XAU/USD trades within a descending channel formation on the 60-minute chart.
The price of the yellow metal has now fallen to trade a few levels below the 100-hour moving average line. However, it still has some room left to run before reaching the oversold levels of the 14-hour RSI.
Gold Price Fundamentals Overview
From a fundamental perspective, XAU/USD trades during a relatively busy period in the US market. On Friday, US nonfarm payrolls for September missed expectations of 90k, with 29k, down from the previous month’s equivalent of 133k. The unemployment rate for the month rose to 4.2%, up from 4.0%, also above the forecast rate of 4.1%.
On the other hand, the average hourly wage growth for the period missed the expected (MoM) and (YoY) changes of 0.3% and 3.3%, respectively, with changes of 0.1% and 3%. Elsewhere, factory orders for August grew by 0.1% (MoM) as expected.
On Thursday, the US ISM Manufacturing PMI for September missed expectations of 55, with a reading of 54.5, down from 54.6 in August. The ISM Manufacturing Prices Paid for the period outshone the forecast of 72.3, with a reading of 77.9, up from the preceding month’s equivalent of 71.1.
On the other hand, the initial jobless claims for last week fell to 197k, down from the previous week’s equivalent of 198k, beating the forecast claim count of 200k. Earlier in the week, the annualized US gross domestic product for Q2 outperformed the expected change of 1.5%, with a change of 2.2%. The Chicago Purchasing Managers’ Index for September also outshone the forecast of 51.2, with a reading of 58.8.
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 pulled back to avoid entering overbought conditions.
Therefore, the bears will look to stretch the current pullback towards $4,100 or lower, down to $4,056. On the other hand, the bulls will look to pounce on rebounds at about $4,185 or higher, up to $4,227.
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 still has some room left to run before reaching oversold conditions.
Therefore, the bears will look to extend the current pullback towards $3,883 or lower, down to $3,614. On the other hand, the bulls will look to pounce on rebounds at about $4,398 or higher, up to $4,662.
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