FX.co ★ Technical analysis of gold for February 7, 2017

Gold price continues higher above $1,230 as we expected. A small pullback is justified but overall trend remains bullish targeting around $1,250 at first and the next is at $1,300-$1,320. Gold has made a very important low at $1,122 and is now in a new uptrend that is expected to push the prices above $1,400 over the coming months.

Gold price is trading above the Ichimoku cloud making higher highs and higher lows. Oscillators are overbought and turning lower. This is just a warning for Gold bulls. This is no sell signal. Short-term support is at $1,220 and the next is at $1,200. Resistance is at $1,235 and the next one is at $1,250.

The weekly oscillators are pointing higher as they have just reversed upwards from the oversold levels. This new uptrend is expected to last for a few months and to bring the price above $1,400. Gold price has entered the weekly Ichimoku cloud. This implies that once we break above the kijun-sen (yellow line indicator) we should then move towards the upper cloud boundary.