Technical analysis of gold for February 1, 2017

Gold price has moved higher yesterday due to a weaker Dollar following remarks made by POTUS Donald Trump. Gold however did not make a new higher high above $1,220. The short-term bearish scenario is still open with a pull back towards $1,160.

Red line - short-term support trend line

Blue line- bearish divergence

Gold price has broken above the Ichimoku cloud on the 4-hour chart. Price is still diverging (RSI) and at overbought levels (Stochastic). Bulls need to break above $1,220 to move higher towards $1,285. However I favor a pull back at least towards $1,200. $1,180 is important short-term support. If broken we can see Gold near $1,160-40.

On a weekly basis Gold price remains below the lower cloud boundary. The rejection levels from last week are being tested. I believe Gold will eventually pull back lower towards $1,160-40 to complete the corrective pattern we expect. Next weekly resistance if $1,220 is broken is at $1,250.The material has been provided by InstaForex Company - www.instaforex.com