It sounds very much like a sundog. As noted, sundogs have their red side towardthe sun, if the ice crystals are large enough to provide color separation.
Sundogs* are caused by hexagonal (or, less often, triangular) ice crystals that are oriented with the symmetry axis horizontal in the air. (If the crystals aren’t thus oriented, you get a halo around the sun) They lie at 22 degrees from the sun, so if you hold your hands out at arms length with your thumb and little finger fully spread, the tip of your pinky and your thumb will just bout touch the sun and the sundog.
The sundogs are caused by ice crystals, which might be not in visible clouds, but are more commonly gathered to form cirrus clouds. Since these clouds are far above the earth, they can form at any time of year, in any season. You can get such ice crystals in the summer, over a desert. But sun dogs seem to be more common in the winter.
Because the ice crystal has to be horizontally oriented, sundogs are most visible near sunrise or sunset. as the sun rises, the sundog actually moves away from the sun, more than the 22 degrees the halo sits at. It also becomes less visible. Above about forty degrees from the horizon, it disappears. (By contrast, the 22 degree halo can be seen at any altitude of the sun)
Sundogs are actually extremely common. My own estimate is that they are about an order of magnitude more likely than rainbows (which other researchers agree with), but are less commonly reported mainly because most people are unaware of them, don’t look for them, and usually can’t recognize them when they see them. (I used to point them out to passersby, often having to tell them precisely where to look, until my wife Pepper Mill told me that I was embarrassing her.) The fact is that, although most pictures of sundogs that are published or put up on the internet show the full-blown, full-color, spectacular sundog, most sundogs are actually pretty understated. To get that full color separation, you need a lot of crystals, all oriented the right way, and they need to be large (several microns at least, and almost a millimeter for really good results). If you have much smaller crystals, as is likely, then diffraction prevents the colors from being separated, and it’s less likely that the crystals will be properly oriented, so you end up with a sort of bright patch in the clouds that’s a sort-of-yellow color, and people just think it’s the way the sunlight is illuminating that particular cloud.
*AKA Parhelia or Mock Suns