FX.co ★ Gold technical analysis for February 12, 2016

Gold price has reached $1,265 which, I believe, is a short-term top. There are signs of a trend reversal and I prefer to be neutral or short on gold at the current levels. Gold is expected to make a pullback.

Gold is trading above the kijun- and tenkan-sen indicators. The price is also above the Ichimoku cloud. A trend is bullish but with oscillators giving bearish divergence signals, I feel it is time for gold price to make a pullback towards at least $1,200 if not towards $1,150.

Red lines - downward sloping wedge

Gold price has broken out above the Ichimoku cloud and the downward sloping wedge. However, I believe it is time for a pullback now, so I prefer to exit longs. The price is expected to pull back towards at least $1,200. If $1,200 is held, we should expect a new final leg up to come towards $1,300. If $1,200 is broken, we should expect $1,150 to be tested.