FX.co ★ Technical analysis of gold for January 13, 2017

Gold remains in a bullish trend as long as price is above $1,177. There are bearish short-term signals of divergence. Long covering is preferred as a pullback towards $1,150-60 is the most optimistic scenario. The worst scenario is that we will see a new low in Gold price below $1,100.

Red lines - bullish channel

Black line - divergence

Gold price continues to trade inside the bullish channel and above the Ichimoku cloud. Price could provide a new high towards $1,215-20 today. However, bulls need to be very cautious. A break below $1,177 will confirm a top is in and that the correction towards $1,150-60 has started.

Gold price is approaching the daily Ichimoku cloud. This is important resistance. I expect price to get rejected at $1,220 and

a pullback towards $,1150-60. This pullback will be very crucial for the medium-term trend. Bulls should cover positions as at least for the short-term a pullback is justified. At the expected new high near $1,215, this will be a great opportunity.