FX.co ★ Gold technical analysis for January 20, 2015

Gold price moved mainly sideways yesterday and did not push lower than $1,272. Today Gold price has made another breakout to new highs moving closer to our longer-term targets. Trend remains bullish. Short-term weakness will be signaled if we break yesterday's lows.

Green line = horizontal trend line support

The Ichimoku cloud is below the current price, and all Ichimoku indicators remain fully bullish on the 4-hour chart as shown above. Trend is clearly bullish; and unless we see a break below $1,272, bulls should not be worried. If support at $1,272 is broken, we should expect Gold price to move towards the Ichimoku cloud at $1,230-35.

Last week I pointed out two possible targets for Gold to move relative to the triangle base and the previous upward move from $1,130 to $1,240. The breakout above the triangle was a great buying signal, and, I believe, that there are good chances of reaching the target areas as shown on the daily chart above. Important daily support is now at $1,220-$1,230.