On Friday, the gold price pulled back from the session highs of about $4,749 to trade at about $4,725 after the latest data. The XAU/USD trades within an ascending channel formation in the 60-minute chart.
The price of the yellow metal continues to trade a few levels above the 100-hour moving average line, despite the pullback. As a result, it still has plenty of 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 US jobs data for April came in better than expected, with 115k versus a forecast of 62k, down from the previous month’s equivalent of 185k.
On the other hand, the average hourly wage growth for the month fell short of the expected (MoM) change of 0.3%, with a change of 0.2%. The (YoY) equivalent also missed the estimate of 3.8%, with a change of 3.6%. The unemployment rate for the period matched the forecast of 4.3%, unchanged from the previous period.
Elsewhere, the preliminary Michigan Consumer Sentiment Index for May missed the expectation of 49.5, with a reading of 48.2, down from 49.8 in April. The preliminary Michigan Consumer Expectations Index for the period edged higher to 48.5, up from 48.1.
Earlier in the week, the ISM Services PMI for April fell short of the forecasted reading of 53.7, with a reading of 53.6, down from 54. The S&P Global Composite PMI for the month also failed to match the forecasted reading of 52, with a reading of 51.7, down from 52.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the gold price trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to extend the latest pullback towards $4,660 or lower to $4,593. On the other hand, the bulls will look to extend the current rally towards $4,792 or higher to $4,856.
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 $5,014 or higher to $5,282. On the other hand, the bears will look to pounce on profits at about $4,421 or lower at $4,118.
Comments
Log in or sign up to join the conversation.