FX.co ★ Ichimoku cloud indicator analysis on Gold for December 31, 2021.

Gold price ends the year on a bullish note. As we explained and mentioned in previous posts using the Ichimoku cloud indicator, Gold price was in a short-term bullish trend as price was above the 4 hour cloud, but in the Daily chart things were a bit unclear. Today we have a bullish signal as price is breaking above the Daily cloud resistance.

Gold price is trading above the Daily Kumo (cloud). This is a bullish signal if price closes today above the cloud. Support by the tenkan-sen (red line indicator) is at $1,805 and by the kijun-sen (yellow line indicator) at $1,789. Breaking above the cloud is a bullish sign. The chikou span (black line indicator) is also above the candlestick pattern, confirming that bulls have the upper hand.

In the 4 hour chart, Gold price back tested the cloud support and bounced off of it. Price is now making higher highs. The tenkan-sen has crossed above the kijun-sen and the Chikou span is also making new highs above the candlestick pattern. All signs remain bullish and we continue to be optimistic for Gold first few sessions of 2022. Gold is expected to continue higher towards $1,850 if $1,830 is broken. At $1,830 we find important Fibonacci resistance.