Gold price is making new highs at $1,200 as we have been expecting for some time now. Gold price could continue higher towards $1,220 but Gold bulls need to be very cautious as there are bearish short-term divergence signs. A pullback is justified towards $1,170-60.

Exchange Rates 12.01.2017 analysis

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Red lines-bullish channel

Blue line- new highs

Black line - diverging RSI

Gold price continues to trade above the Ichimoku cloud and inside the red bullish channel. There are divergence signs in the 4-hour RSI and this is an important warning for the short-term momentum. We could see $1,210-20 but Gold bulls should be prepared for a pullback towards at least $1,170 where the 38% Fibonacci retracement is found.

Exchange Rates 12.01.2017 analysis

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On a daily basis Gold price is approaching the 38% Fibonacci retracement resistance of the latest decline and the Ichimoku cloud resistance. A rejection here is possible and bulls need to be very cautious. Overall a pullback is needed but that pullback will need to make a higher low and not break below $1,122.

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Performed by Alexandros Yfantis, Analytical expert
InstaForex Group © 2007-2017

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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