Technical analysis of gold for February 3, 2017

Gold price made new highs yesterday and confirmed that the shallow pullback towards $1,180 ended the entire correction of the move from $1,122 to $1,220. Gold trend is bullish and is expected to reach $1,280-60 soon. Bulls do not want to see Gold below $1,1197 and specially below $1,180.

Blue line - resistance

Red line - support

Gold is trading above the Ichimoku cloud. The price is making higher highs and higher lows. Support is at $1,197 and the next one is at $1,180. Resistance is at $1,226 and the next one is at $1,250. Gold did not make a deep pullback towards $1,160 as I initially expected. The shallow retracement is another indicator of the strong bullish trend in Gold.

The weekly candle has re-entered the Ichimoku cloud. If the week closes with price inside the cloud, I will expect the upper cloud boundary to be reached soon. Gold has made an important long-term low at $1,122 and which is of similar importance to the $1,045 low of 2015. I expect a big upward move for Gold this year above $1,400.The material has been provided by InstaForex Company - www.instaforex.com