In the Asian session on Monday (January 15), spot gold rose rapidly in the short term, and the price of gold just touched $2056.74 / ounce. Well-known financial website FXDailyReport analyst Nicholas Kitonyi wrote an article to analyze the future trend of gold.

On Friday, spot gold prices gathered bullish momentum and climbed to an intraday high above $2,060 / oz. The US and UK air strikes in Yemen have increased tensions in the Red Sea, boosting gold's appeal as a safe-haven investment.

Gold retreated from above $2,060 an ounce late Friday in New York, trimming the day's gains. Spot gold rose 1% to close at $2,049.04 an ounce on Friday.

On Friday, gold retreated from a weekly high of about $2,062 an ounce to about $2,046 an ounce, Kitonyi wrote. On the 60-minute chart, gold continues to trade within an uptrend channel.

Kitonyi noted that gold prices are currently close to the 100-hour moving average. Friday's late pullback helped gold recover from overbought levels on the 14-hour Relative Strength Index (RSI) and return to regular trading territory.

Two charts look at the technical outlook for gold

In terms of short-term movements, Kitonyi said that technically, based on the gold 60-minute chart, gold prices appear to be trading within an upward channel. However, the 14-hour Relative Strength Index (RSI) has recently retreated, recovering from overbought conditions.

As a result, gold bulls will be looking to take profits on a rally to $2,062 an ounce. On the other hand, gold bears will be looking for a pullback to around $2,038 or even lower at $2,029.

Kitonyi noted that on the daily chart, gold prices also appear to be trading in an upward channel. However, the 14-day RSI has recently pulled back, moving toward the midline and avoiding entering overbought conditions.

As a result, gold bulls will set long-term profit targets of around $2,088 an ounce, or higher at $2,148 an ounce. On the other hand, gold bears will target long-term profits around $1,977 / oz, or lower at $1,930 / oz.