Technical analysis of gold for January 10, 2017

Gold price remains near its highs after making a higher high yesterday at $1,187. However in the short-term a pullback is justified towards $1,150-60 as there are bearish divergence signs on the 4-hour chart.

Red lines - bullish channel

Gold price is trading inside a short-term bullish channel above the 4-hour Ichimoku cloud support. Short-term support is at $1,175. If that level is broken we will assume that the pullback has started with most probable target the $1,160-50 area. Gold price could rebound towards the Ichimoku cloud for a backtest.

The weekly chart remains bullish as oscillators are far from overbought and point to a multi-week rise ahead of us. I believe there are still chances we see a new low below $1,122 but

the odds are in favor of the bullish scenario for the Gold price. The chances of a new low will weaken once Gold price breaks above $1,220.

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