Ichimoku cloud indicator analysis of gold for January 4, 2018

The gold price has made a shallow pullback so far towards the short-term support of $1,300-$1,310. There is potential for a bigger decline from current levels. Upside is limited. We could see one more new higher high, but I believe the next big move will be to the downside.

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The gold price has broken below the 4 hour tenkan-sen. The price tested the kijun-sen and remains above it. The trend remains bullish. Short-term support is at $1,306. Resistance is at $1,318.

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On a daily basis, the gold price is in a bullish trend. The price is above the daily Kumo, but I expect at least a pullback and a back test of the broken cloud support. Daily cloud support is at $1,280-70. A break below $1.265 could open the way for much lower towards $1,200.The material has been provided by InstaForex Company - www.instaforex.com