Technical analysis of gold for January 8, 2018

The Gold price is about to start a correction lower at least towards $1,290. Trend in the very short-term is turning bearish as price has showed topping and reversal signs. The bearish divergence we mentioned last week is starting to push price lower.

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Blue lines - bearish divergence signs

The Gold price has short-term support at $1,313 and next and most important short-term support at $1,306. Breaking below $1,306 will confirm the top is in. My target is to see the price at least reach the 38% Fibonacci retracement around $1,290. However, there are many chances we could see much lower.

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Short-term resistance is at $1,323. Price is at overbought price levels in the daily chart and my minimum expectation would be to push the price back towards cloud support around $1,280-70. I'm heavily bearish Gold at current levels.

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