FX.co ★ Short-term technical analysis on Gold for January 2nd, 2022.

Blue lines- bullish channel

Red line- bearish RSI divergence

Gold price is trading around $1,823. Short-term trend remains bullish as price continues trading inside the short-term bullish channel. The lower channel boundary is still respected as price is making higher highs and higher lows. Support by the lower channel boundary is now at $1,798. As long as this is the case, bulls will remain in control of the trend. Price is very close to making new higher highs but the RSI seems ready to provide a new bearish divergence. If the RSI provides a new bearish divergence signal, then the chances for a reversal will have increased dramatically. Upside target and resistance area is around $1,835-45. The year has started on a bullish note as it ended. However we are very cautious as the RSI provides bearish divergence warnings.